The town is situated on the slopes of a volcanic hill and is surrounded by many former pa sites.  Kaikohe sits on some of the most naturally fertile lands in New Zealand.   An early description of Kaikohe’s natural resources states “the land is first class, and consists in beautiful level country to the extent of about 100,000 acres”. Kaikohe’s lands offers significant horticultural potential.

The Ngawha geothermal field , centered on Ngawha Spings, is situated approximately 5 km east of Kaikohe .  The field covers an area of approximately 25 square kilometers, smaller than the only other geothermal field in New Zealand, the Taupo Volcanic Zone. The health spa at Ngawha Springs are famous in Maori tradition for their healing qualities. There are a great variety of pools that tend to be slightly acidic and are rich in ammonia, bicarbonate, boron and mercury, which is not typical of other springs in New Zealand.