Doolow stands on the banks of the Dawa River where it flows into the Juba, the point where the Juba begins its course through Somalia. Across the river lies Dolo Odo in Ethiopia's Somali Region, and a bridge over the Dawa links the two towns.

The seat of Doolow District, it is about 470 km north-west of Mogadishu, 70 km north-west of Luuq and 42 km north of the twin border towns of Beled Xaawo and Mandera. The town has grown quickly in recent years as many displaced families have settled here.

Doolow was one of the markets on the trade route that ran from Baardheere through Luuq to Ginir in Ethiopia. Like other border towns, its history has been shaped by relations between Somalia and Ethiopia. Since 2005 the built-up area has expanded rapidly, mainly along the road to Luuq and towards Mandera.

Doolow is a close-knit cross-border community where people move freely between the two countries for work and trade, and long-time residents, returnees and displaced families live side by side. A court applying sharia law serves the whole district.

Lemon and lime groves line the banks of the Juba and Dawa, and farmers pool their harvest for export, mainly to the United Arab Emirates via Mogadishu and Mombasa. Fodder and maize are also grown.

Cross-border trade is the town's lifeblood: sugar, rice and dairy products arrive from Mogadishu, cement, coffee and khat from Ethiopia, and potatoes, tea and vegetables from Kenya. Doolow has two main markets, and humanitarian agencies also play a large part in the local economy.