
Oto is situated at the southeastern bend of the Little Sioux River, where the town's street grid, including State St and Royal St, occupies the lowlands near the riverbanks. The surrounding terrain in Woodbury County is defined by a dense network of drainages and ridges, including the deep cut of Smoky Hollow and the wandering paths of Fern Creek and Miller Creek. A notable hydrological feature is the Old Channel Little Sioux River north of town, which creates Horseshoe Lake, marking where the river once flowed before its course shifted or was modified.
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