Donald is situated within an agricultural region known for its wheat, barley and lamb production. It is surrounded by a number of lakes including the huge Lake Buloke which is a haven for local birdlife and is located around 8 kilometres north of the town.
Donald's commercial centre is situated along Woods Street which forms part of the main highway through the town. It is lined with a number of historical buildings, some of which date back to the 1860s. At the northern end of Woods Street is the historic police station and old camp cells. A number of buildings in Donald feature murals painted on their walls by local and national artists.
The Richardson River snakes its way around the centre of Donald, lined with walking tracks and parkland. The course of the river forms Scilleys Island which is small reserve with picnic facilities, accessible only by a couple of footbridges. Fronting the river in Byrne Street is Bullocks Head which consists of a viewing platform overlooking a tree growth that resembles the head of a bullock.
An agricultural museum is located in Hammill Street, adjacent to the showgrounds and sporting complex, and it features displays of machinery from early farming days.