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Baxter has a total area of about 51 sq. kms. and is located at an elevated height of about 1210 ft from the sea level. There are two main highway routes in the city and Baxter is located north of Minnesota's geographical center. The city is situated in the terminal moraine area of Lake Superior from the ice sheet of Labrador. Baxter is bordered on the east by Brainerd and Cass County on the west. It is a part of the lake area of Brainerd.
Large number of service industies and tourism are the principal economic activities of the region. The housing sub-divisions of Baxter also offers susbantial earning oppurtunities for the locals. There are a number of radio stations in the town and they offer plenty of earning potential for the locals, mainly in the tourism sector apart from other industries.