Located on New Providence Island, Nassau's harbour has a blend of old world and colonial architecture, and a busy port. The tropical climate and natural environment of the Bahamas have made Nassau an attractive tourist destination.

Nassau developed directly behind the port area. New Providence provides 200 km² of relatively flat and low-lying land intersected by low ridges (none of which restricted settlement). In the centre of the island there are several shallow lakes that are tidally connected.

The city's proximity to the United States (290 km east-southeast of Miami, Florida) has contributed to its popularity as a holiday resort, especially after the United States imposed a ban on travel to Cuba in 1963. The Atlantis resort on nearby Paradise Island accounts for more tourist arrivals to the city than any other hotel property of Nassau. The mega-resort employs over 6,000 Bahamians, and is the largest employer outside government.