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Monterey lies in the southern end of the Berkshires , at the headwaters of the Konkapot River . The river rises from Lake Garfield, which is surrounded by several hills, and Lake Buel , which lies along the New Marlborough town line. Much of the northwest corner of town is dominated by Mount Wilcox and the lower portion of Beartown State Forest . The state forest is crossed by the Appalachian Trail , which crosses from Great Barrington, below the peak of the mountain and on to Sky Hill in Tyringham.
Monterey lies along Massachusetts Route 23 , the main east-west route through town. Near the Great Barrington line, Route 57 begins and heads eastward, passing Lake Buel before heading into New Marlborough. Route 57 also carries Route 183 , which is combined with Route 23 west of the junction, southward towards Connecticut. There are also several non-state highways which connect the town to its other neighbors. Most of the population is centered around Route 23, especially near Lake Garfield.
The nearest interstate, Interstate 90 (the Massachusetts Turnpike ), passes through neighboring Otis, and its nearest exit is at U.S. Route 20 in Lee. The nearest regional rail and bus service is at Great Barrington, which is at the end of a weekend service line to New York City via the MTA rail line (note: this refers to a discontinued connecting bus service to GB from the MTA's Wassaic, NY station). Amtrak service can also be found in Pittsfield, along the east-west Lake Shore Limited . There is a small regional airport in Great Barrington, with the nearest national air service at Bradley International Airport in Windsor Locks, Connecticut .