The city is located between Thompson and Churchill on the Hudson Bay Railway line and is a significant community largely because of the nearby Nelson River Bipole converter station which is situated on the banks of the Nelson River.
The majority of Gillam's surrounding District area is largely uninhabited and undeveloped, but is filled with many lakes, rivers and large forests of pine trees. Three of Manitoba's largest hydro dams -- Kettle Generating Station, Long Spruce Generating Station, and Limestone Generating Station -- are located within Gillam's boundaries. The town is also home to the Fox Lake Cree Nation, a Native Indian band whose members we the original inhabitants of the area, and the ghost town of Sundance, which was once a busy fully functioning town and has since been torn down to facilitate the building of the Limestone Generating Station.