McGehee is located in Desha County just west of Arkansas City, between Dumas and Lake Village at the 65 & 278 US Hwy junction. Also situated just west of the Arkansas boarder and the Mississippi River.

The McGehee family came to the area from Alabama in 1857. Benjamin McGehee, his wife, Sarah, a son, Abner and daughters Laura and Mary settled on land that is now a part of McGehee. Abner McGehee, son of Benjamin and Sarah McGehee purchased 240 acres of land on July 1, 1876, on which the town of McGehee was later to be located. Abner McGehee constructed a large commissary building and entered the mercantile business to accommodate the new arrivals and the new railroad in 1878.

Just twenty miles south of McGehee is Lake Chicot State Park and Chicot County Park, both located on Lake Chicot, a large Oxbow Lake where camping is popular. Fishing is abundant not only on Lake Chicot but also on the Mississippi River, Arkansas River, and the White River. The majority of hunters in the area hunt on private leases.