Windermere is a rural locality 15 km north-west of Ballarat on the railway line to Ararat. Windermere has been associated with Burrumbeet to its west (through the Burrumbeet Park and Windermere Racing Club) and with Cardigan to its south. It is on the Ballarat to Ararat railway line. Windermere is the centre of a large farming area. The main activity is sheep grazing for wool and meat. The Windermere Hotel, however, is somewhat removed, being on the old Western Highway at Cardigan Village.