The low rolling hills of Clay County are devoted to agricultural production. The various drainage areas are still largely wooded. The Little Wabash River flows southeastward through the center of the county, while Muddy Creek drains the eastern portion (the meanders of Little Muddy delineate a portion of the county's east border with Richland County). Buck Creek, in the south part of the county, flows eastward and joins the Little Wabash above Clay City. Raccoon Creek flows southeastward from the lower part of the county into Wayne County. The highest point on the terrain (646 feet/197 meters ASL) is a small point along the western border with Marion County.