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The Whatcom Falls Neighborhood is located at the eastern edge of the city south of Whatcom Creek. The Whatcom Falls Neighborhood is home to approximately 2,000 Bellingham residents. Whatcom Falls is divided by Lakeway Dr., separating Bayview Cemetery and Whatcom Falls Park from residential areas of the neighborhood south of Lakeway Drive. The largest portion of the development in the Whatcom Falls is mostly residential,  the area is typically developed at about four units per acre density. There are still some large tracts of undeveloped land remaining at the southern and eastern areas of the Whatcom Falls Neighborhood.

 Bloedel-Donovan Park can be easily accessed by the neighborhood. The City and County collaborated together to preserve approximately 60 acres for future park and trailhead development located at the end of Birch Street, which is known as "Lookout Mountain."