The southern face of Steel Fell falls over Blakerigg Crag to Greenburn, a feeder of the lake of Grasmere. Wythburndale marks the north western boundary of the fell, flowing to Thirlmere. The eastern face drops over Ash Crags to the pass of Dunmail Raise. Two streams, both named Raise Beck, flow north and south down the pass, following the main Keswick–Ambleside road. Steel Fell thus sits on the Lake District’s main north–south watershed. Water from the southern slopes reaches the sea at Morecambe Bay while rain falling a few yards to the north reaches the sea via the River Derwent at Workington.