According to the United States Census Bureau, the town has a total area of 55.0 square miles (142 km2), of which 53.2 sq mi (138 km2) is land and 1.8 sq mi (4.7 km2) is water, comprising 3.31% of the town.[1] Canaan is drained by the Indian River and Mascoma River. Canaan Street Lake is in the center, and Goose Pond is in the northwest.
The town center lies in the valley of the Indian River (a tributary of the Mascoma River) at the base of Mount Cardigan, which lies to the east in the neighboring town of Orange. A mountain road leads from Canaan to a trailhead in Cardigan Mountain State Forest, where hiking trails on the west slope of the mountain lead to the bare-rock summit. The highest point in Canaan is the top of an unnamed ridge (approximately 2,270 feet (690 m) above sea level) in the northeast corner of town, overlooking Derby Pond.
Canaan lies almost fully within the Connecticut River watershed, except for a tiny part of the northeast of the town, which is in the Merrimack River watershed.[7]
The town is crossed by U.S. Route 4 and New Hampshire Route 118.
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