Middletown is located on historic Aquidneck Island, between the communities of Newport and Portsmouth. Bounded by three bodies of water, Narragansett Bay on the west, the Sakonnet River on the east, and Rhode Island Sound on the south, Middletown is an ocean community with all the amenities of seaside living. Middletown's excellent highways and bridges place the community in a favorable location, and the town is easily accessible from nearby Massachusetts and local Rhode Island municipalities.

Historic Newport is adjacent to Middletown, providing many recreational activities. Middletown is an attractive location for both industry and residence. Middletown is semi-agricultural with a diverse landscape, delicate sand dunes broken up by a partially rocky coastline, and snow white beaches giving this community a seaside flair. Endless stone walls line the landscape contributing to the atmosphere of the town which is typically New England. Being practically surrounded by water, the influence of the sea on the town is inescapable.

There are marvelous fishing, boating, surfing and swimming facilities. The moderating effects of the ocean provides Middletown with mild winters while the cooling sea breezes limit the number of extremely hot summer days to perhaps a few a year. Middletown has excellent land available for industrial development, some of which overlook the Atlantic Ocean. The community's diverse labor force and convenient transportation facilities makes it an excellent location for business development. One of the most desirable aspects of Middletown, whether it be for business interest or residence, is its livability in the form of recreational and cultural activities.