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Coldstream is located in the Okanagan Valley, at the northern end of Kalamalka Lake. The municipality's southern boundary is formed by Highway 97A and its eastern border is formed by Coldstream Creek. To the north, it borders on Coldwater Road which separates it from Vernon and to its west are rural areas including a portion of Kalamalka Provincial Park. The municipal offices are located at 860 Main Street (Highway 97A).