Raes Junction is a small settlement, located at the intersection of State Highways 8 and 90. The highways which meet at the junction are the main routes to the Clutha valley for travellers from Dunedin and Invercargill respectively.
Although the settlement itself is little more than a farming and horticultural community, its location at this mid-way junction is thus of considerable regional importance, as is the larger settlement of Beaumont, some six kilometres to the southeast. The settlement consists of a mere five families, who occupy four local farms and the settlement's most well-known feature, the Raes Junction Hotel.
