55 miles southeast of Downtown Dallas, Gun Barrel City is located on the eastern shore of Cedar Creek Lake, a truly scenic all-water-sports playground. This 32,873-acre lake is 18 miles long and 8.5 miles at its widest point, more than large enough for great sailing and has numerous coves for water skiing, jet skiing, fishing and motor boating.

Gun Barrel City itself is located on State Highway 334, between State Highway 274 on the East and US Highway 175 on the West.

Gun Barrel City is the center of commercial and business activity in the Cedar Creek Lake Area and features prominent retailers and restaurants such as Super Wal Mart, Lowe’s Home Improvement, Radio Shack, Chili's, La Quinta and CVS Pharmacy.