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Oak Island is located in southeastern Brunswick County at 33°54′59″N 78°7′50″W / 33.91639°N 78.13056°W / 33.91639; -78.13056 (33.916262, -78.130468). It is bordered to the south by the Atlantic Ocean, to the east by Caswell Beach , to the north in part by the town of St. James , and to the west by the town of Holden Beach across Lockwoods Folly Inlet . A significant addition to the town's area has been made since the 2000 census on the North Carolina mainland, west of St. James and extending north to border the city of Boiling Spring Lakes .