It is located one-half mile north of Port Stanley Airport, four miles to the northeast of the capital city of Stanley, on a peninsula connected to the mainland by the Boxer Bridge and a narrow isthmus known as "The Neck".
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Most cruise ships pass Yorke Bay and Gypsy Cove on the way to dock in Stanley Harbour.
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Gypsy Cove and the smaller Yorke Bay lie in its southern part to the northwest of Port Stanley Airport.
Port William has several other bays on it - Gypsy Cove and Yorke Bay which is a noted beauty spot, Hearnden Water, which is effectively the estuary of the Murrell River and Weir Creek, Blanco Bay and Sparrow Cove.