Clarence Town is both a primarily rural locality and a township in the Dungog Shire local government area in the Hunter Region of New South Wales, Australia. It is 193 kilometres (120 mi) north of Sydney, 54 km (34 mi) north-north-west of Newcastle, and 28 km (17 mi) from the Pacific Highway at Raymond Terrace. The locality is bisected by the Williams River. The township sits just to the west of the river about 32 km (20 mi) upstream from where it flows into the Hunter River at Raymond Terrace.

In the 2006 census the locality had a population of approximately 2,100 while the township, which is the largest population centre in the area, had a population of 794.