McGregor is located between Dallas and Austin, at the intersection of the St. Louis Narrow Gauge and Santa Fe railroads. As in its founding days, the city relies on the railroad for commerce, and passenger trains stop daily at McGregors 1904 rail station. Two area lakes, Lake Waco and Lake Belton, offer a variety of recreational facilities. Mother Neff State Park, the first state park founded in Texas, is 6 miles (11 km) from McGregor.