Omarama is a small town (population 291 at 2018 census) at the junction of State Highways 8 and 83, near the southern end of the Mackenzie Basin, in the South Island of New Zealand. Omarama is in the Waitaki District, in the southern Canterbury region. The Ahuriri River is a short distance to the north of the township. Omarama is 30 km (20 minutes drive) southwest of Twizel, 40 km (30 minutes drive) southeast of Lake Ōhau and 32 km (21 minutes drive) northeast of the Lindis Pass.

Omarama is primarily a rural service centre, providing local farmers and other residents with necessities and facilities such as grocery shopping, fuel and mechanical services, as well as a post shop.

In more recent years these and similar services have expanded moderately, due to the increase in new residents and visitors, including anglers, artists, astronomers, sailplane enthusiasts, skiers and general tourists.

A significant proportion of permanent village residents are employees of, or contractors to, Meridian Energy Limited, a state-owned enterprise which is responsible for the nearby dams and powerstations that are part of New Zealand’s hydroelectricity generation.

Ōmarama is Māori for « Place of Light », a reference to its extraordinarily pure and clear sky.