Dereel is a rural village south of Ballarat and about 10 kilometres north of Rokewood. It is located 33 kilometres from Ballarat & 70 kilometres from Colac and has a population of 666 approximately. The Dereel Soldiers' Memorial Hall, located on Swamp Road, is considered the town centre. Dereel also has a large wetland area, known as the 'Swamp' or 'Lagoon'. The village has a general store, a nursery and an engineering works.