Located 11 miles south of neighboring communities Ketchum & Sun Valley, Hailey lies in the midst of the lovely Wood River Valley and in the heart of the central Idaho Rockies. Hailey is about 160 miles east of Boise, the state's capital. The Wood River Valley is in Blaine County, at the edge of the Sawtooth and Challis National Forests. Almost surrounded by U.S. Forest Service and Bureau of Land Management lands, the valley's heart is the Big Wood River. The main route into town is ID 75 off US 20 to the south. It can get a little crowded on the 12-mile stretch between Hailey and Sun Valley, as it is used by an average of 12,000 vehicles per day. The nearest Interstate is I-84 to the south.

The Friedman Memorial Airport is situated in Hailey and serviced by Horizon Air and SkyWest Airlines. Car rental and taxi services are available at the airport. Sun Valley Stages offers scheduled shuttle connections between the Boise Airport and the Wood River Valley, and Sun Valley Express provides trips between Boise Airport and Wood River Valley. Teton Stage Lines offers charter motor coaches. The Ketchum Area Rapid Transit (KART) system provides excellent free bus transportation throughout the Wood River Valley, with services every 20 minutes.

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