Castlederg ward lies in the westernmost part of the Derry City and Strabane District, bordering County Donegal. The area is defined by the River Derg, which flows through the town centre before meeting the Strule. The surrounding landscape consists of low, rolling hills and farmland, creating a rural setting. The local economy has traditionally been connected to agriculture and small-scale industry.
The town itself serves as a key service centre for the surrounding hinterland. Its history is closely linked to the Plantation of Ulster, evident in its planned street layout and the ruins of Castlederg Castle near the riverbank. The annual Derg Vintage Rally is a notable local event, drawing visitors to see historic machinery and vehicles. The river provides a focus for angling and quiet walks along its banks.
