Picabo is located about 56 miles (90 km) north of the Snake River along the northern edge of the Snake River Plain, a topographic depression that cuts across the Basin and Range Mountain structures of southern Idaho. The nearest flowing stream is Silver Creek, a scenic spring-fed tributary of the Little Wood River, a key source of irrigation water for eastern Blaine County. The pristine Silver Creek is renowned among fly fisherman and was a favorite of Ernest Hemingway, who enjoyed hunting and fishing along the stream with local rancher Bud Purdy. The name "Picabo" supposedly derives from a Native American term translated as "silver water". The name “Picabo” was made familiar by Picabo Street, an Olympic skier who grew up in nearby Triumph.