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Tignish is located in the Tignish River valley, which runs from its source near Mount Stewart to its mouth at the Northumberland Strait. The river's watershed covers an area of approximately . The town is situated on a series of hills and bluffs overlooking the Tignish River estuary. It has been noted for having some of Prince Edward Island’s most spectacular views, with many residents taking advantage by building waterfront cottages along the shoreline.