Paxson is located in Valdez-Cordova Census Area northeast of Anchorage at Mile 185.5 Richardson Hwy at the junction with Denali Hwy. There is a lot of wildlife in the area, including moose and grizzly bears. There is sled dog racing the first week in April.
Hufman Field, a 2,800 foot gravel airstrip is to the south of town. It is a gateway to Denali National Park and Preserve
More than 400 archaeological sites indicate that the area has been inhabited for at least 10,000 years.