The Shire has two principal rivers, the Williams in the east and the Paterson (and its major tributary the Allyn) in the west. Both are tributaries of the Hunter River and contribute over 40 percent of the flow of the Hunter.
The Shire’s economy has traditionally been based on agriculture and timber, with the alluvial river flats suitable for intensive agricultural production. The balance of the rural land has been traditionally used for grazing.
Tourism is also a focus of Dungog Shire’s economy with the National Parks, State Forests, Chichester Dam and the river systems as well as the historic and scenic character of the area providing the major focus for attracting visitors.