The Cotswolds lie within the counties of Oxfordshire, Gloucestershire, Wiltshire, Somerset, Warwickshire, and Worcestershire. The county of Gloucestershire forms the largest area of the Cotswolds.

The Cotswold hills run southwest to northeast through the above counties, The northern and western edges are marked by a steep escarpment down to the Severn valley. This escarpment, also known as the Cotswold Edge, is a result of the uplifting of the limestone layer, exposing its broken edge. On the eastern boundary lies the city of Oxford and in the west is Stroud. To the south the middle reaches of the Thames Valley and the towns of Cirencester, Lechlade and Fairford are often considered to mark the southern limit of this region. However, key features of the area, especially the characteristic uplift of the Cotswold Edge, can be clearly seen as far south as Bath and towns such as Chipping Sodbury and Marshfield share elements of Cotswold character.

The area is characterised by attractive small towns and villages and , it has to be said, a few complete dumps you wouldn't be seen dead in, built of the underlying Cotswold stone (a yellow oolitic limestone). This limestone is rich in fossils, in particular fossilised sea urchins. In the Middle Ages the wool trade made the Cotswolds prosperous. Some of this wealth was put into the building of churches so the area has a number of large, Cotswold stone "wool churches". The area remains largely affluent and has attracted wealthy people who own second homes in the area or have chosen to retire to the Cotswolds.

The Cotswolds were designated as an Area of Outstanding Natural Beauty in 1966.

The Cotswold Way is a long-distance footpath (approx 103 miles) running the length of the edge of the Cotswold escarpment with good views over the Severn Valley and the Vale of Evesham.