The Municipality of Gradiska is situated in the northwestern part of the Republic of Srpska and covers Lijevce Polje (i.e. field) and Potkozarje (i.e. the region below Kozara Mount) of a total area of 762 km². Along the Sava river on the north, at a length of over 40 km, it borders with the Croatian Municipalities of Nova Gradiska and Novska, while on the east, it borders with the Municipality of Srbac, on the south predominantly with Laktasi and partly with the Municipality of Banja Luka and on the west and southwest with the Kozarsko-Dubicka and Prijedorska Municipalities.
Some 62,000 people inhabit the territory of the Municipality while the town itself has a population of 18.000. The Municipality has 69 villages organized in 53 local communities.
The largest village settlements are Nova Topola, G. Podrgradci, Orahova, and Turjak. Electrification of the whole territory of the Municipality has been completed and the rural settlements are about to be interfaced with the telephone network. All the villages are connected with the center of the Municipality by bus lines and there are also daily bus lines from Gradiska to Banja Luka, Belgrade, Novi Sad, Subotica, Sarajevo, and other places. Gradiska is 50km away from Banja Luka, 280km from Belgrade, and 130km from Zagreb.

The road network includes 700 km of district and principal roads and 70 km of trunk roads that via Gradiska lead towards the eastern parts of the Republic of Srpska and Banja Luka, and northwards towards the Central and Western Europe.

In Gradiska there is also one of the major international border crossings in the Republic of Srpska for passenger and cargo transport.

Apart from the Sava River, which is navigable in this area, the Municipality is also rich in mountain brooks the largest of which are Vrbaska, Jablanica, Jurkovica, and Lubina.

Gradiska is located at an altitude of 92 m above sea level, its fertile Lijevcanska Plain lies at an average altitude of 110 m above sea level, while certain villages in the hilly area are situated as high as 300 m above sea level.

The favorable climatic, continental conditions and the geographic position, rich forest heritage of Kozara and Prosara Mounts, the fertile Lijevce Plain and parts of Posavina (i.e. the valley of the Sava river), suitable hilly arable land, deposits of diabase stone, rich deposits of marble in Prosara, navigability of the Sava river, and other advantages, have influenced the development of numerous productive branches of the economy, primarily of the primary agricultural production, foodstuffs and wood industries, and others.