Bilaspur is situated in the eastern part of Chhattisgarh, falling within the fertile Chhattisgarh plain. The city is bisected by the rain-fed Arpa River, which originates in the nearby Maikal Hills. The geography of the surrounding district transitions from flat, highly arable plains in the south and east to more rugged, forested terrain in the north and northwest.
The region's physical geography is notable for its rich natural resources, particularly the vast coal reserves in the nearby Korba and Gevra belts. Just outside the urban center, the geography becomes heavily forested, eventually leading to the dense woodlands of the Achanakmar-Amarkantak Biosphere Reserve. The area's geology is characterized by sedimentary rock formations, part of the extensive Mahanadi river basin.