Out town lies at the northern end of the Köyceğiz lake from which the town takes its name. It is a hidden paradise between the citrus groves and sweet gum forests. Köyceğiz lake is 52 km'2 in size and via the Dalyan channel it reaches the Mediterrean Sea through a winding reed lined maze. There is a constant current into the lake. Salty water and fresh water mixes together. This gives a special flavour to fishery products and also prevents the lake from contamination. The impact of the Mediterrean climate and the valleys extending from mountainous areas to the coastal areas enrich the vegetation and animal species in the area. Alongside with blue crabs, mountain goats, Nile Turtles, Caretta Caretta turtles, 150 kinds of birds species are observed.
Köyceğiz in the periphery distances is as follows;
| Köyceğiz | Kaunos | 39 km (Kaunos antik kenti & müzesi) |
| Köyceğiz | Ekincik | 35 km |
| Köyceğiz | Sultaniye | 22 km |
| Köyceğiz | Dalyan | 30 km |
| Köyceğiz | Yuvarlakçay | 15 km |
| Köyceğiz | Şelale | 7 km |
| Köyceğiz | Yayla Köy | 15 km |
| Köyceğiz | Kartal Gölü | 22 km |
| Köyceğiz | Dalaman Airport | 29 km |
| Köyceğiz | Fethiye | 65 km |
| Köyceğiz | Akyaka | 28 km |
| Köyceğiz | Marmaris | 60 km |
