Watonga is located in west central Oklahoma in central Blaine County (of which it is the county seat) west-northwest of Oklahoma City at the intersection of SRs 33 and 8 and U.S. Highways 281 and 270 on the eastern banks of the North Canadian River about 8 miles south of Roman Nose State Park.

The town is named in honor of Watangaa (Black Coyote), an Arapaho chief. Its claim to fame is its cheese factory, which is the last of its breed in the state. They produce from 1,500 to 8,000 pounds of various cheeses but the mainstay is cheddar. It supports the Watonga Cheese Festival which is held the first weekend of October each year.

The historic T.B. Ferguson Home was built for Thomas Benton Ferguson, the 6th Territorial Governor. He was one of the main proponents of statehood using his influence as the publisher of the Watonga Republican newspaper. Edna Ferber was a guest here while doing her research for her novel "Cimarron".

The population estimate for July 1, 1998 was 3,068, a decrease of 340 since 1990.