Situated 71km west of Ceduna on the Eyre Highway, the small town of Penong has 26 windmills on the eastern outskirts of the town, providing water for the area. Wells were sunk from 1868 to 1884. Each windmill is privately owned and supplies water for domestic use. Penong has a caravan park, hotel, shop, roadhouse, silo complex, a school, football clubrooms and oval.

Salt and gypsum industries complement this predominantly farming district.