The North Branch of the Metedeconk River forms the northern boundary and part of the eastern boundary of the township, while the South Branch runs through the township. A southern portion of the township is drained by the north branch of Kettle Creek. As implied in its name, Lakewood township has four lakes, all of them man-made; three of them - Lake Carasaljo, Manetta, and Shenandoah - are on the South Branch of the Metedeconk River, whereas the fourth - Lake Waddill - is on Kettle Creek.