The small community of Ashwood is located in northeast Jefferson County. Presently, about 35 families, mostly ranching families along with some retired people and others employed in the trucking business, live in the Ashwood area.
There is an elementary school in Ashwood, and the town post office is located in a building which also houses Sandy's Rock Shop.
Trout Creek runs through Ashwood. The creek, with its headwaters in the Wildcat Mountain Wilderness area of the Ochoco National Forest, runs a long course through rural areas of Jefferson County, until it meets the Deschutes River near the Jefferson-Wasco county border.