Canyon Ferry has become one of Montana's foremost recreation areas because of its proximity to Helena, Great Falls and Butte. The reservoir covers 25 miles and there are 24 Bureau of Reclamation maintained recreation sites around the reservoir. There is east access to the reservoir from US Highway 12 east of Helena or just north of Townsend.

Canyon Ferry offers a variety of recreational opportunities including boating, year-round fishing for trout and salmon, camping, sightseeing, picnicking, hiking, hunting, waterskiing, nature study, and swimming. Boat access is available at all of the campsites. A number of additional public boat launch areas are located near the dam on the north end and near Townsend on the south end. A Sapphire mine, laundromat, dining, entertainment, cabins, beaches, house boats, showers, and grocery stores are available in the area.