The approximately 2 km² large lake is located at an altitude of around 1016 moh. It is fed by the Hesteelva, the outflow of Litledalsvatnet on the Dalsnibba massif, and by numerous meltwater streams. The Djupvatnet is part of the Glomma river system and initially drains via a stream on the eastern shore of the lake into the Langvastjønna, which in turn flows via a system of streams and lakes (Langvatnet, Nørdre- and Søre Lagervatnet, Breiddalsvatnet, Grotlivatnet, Heimdalsvatnet, Vuluvatnet, Pollvatnet and Hegebottvatnet). flows into the Otta.
The Geiranger road runs past the northern shore of the lake, from which the private Nibbevegen toll road to Dalsnibba branches off. The Djupvasshytta has been located at this crossroads since the 19th century, right on the lake shore.