Lake Laxsjön is located at Billingsfors, just south of Bengtsfors. The lake is part of the Dalsland Canal’s lake system. From both north and west several larger influxes enter the lake, including one at Billingsfors from Lake Lelång through Lake Bengtsbrohöljen and another at Skåpafors from Lake Svärdlång. Another is the Stenebyälven River that empties in the lake just south of Billingsfors in the west. The lake empties at Långbron at the southern tip, flowing through Långbroströmmen into Lake Långbrohöljen and on past Mustadfors to the next lake named Råvarpen. Lake Långbrohöljen is also part of the Lake Laxsjön FVO.
Lake Laxsjön has relatively clear, cold water. Most of the shore consists of mountains, cliffs and stony beaches, with some shallower reed coves in the northern and eastern parts near Fjäll. There are eight islands or smaller islets. The forests surrounding the lake is mostly spruce with some hardwood mixed in.
Billingsfors is located on the western shore of lake and its paper mill can be seen from the middle of the lake. The south-western side of the lake is dominated by Baldersnäs Manor. There is a large point of land running north-south whose northern tip is called ‘the end of the world’ and offers a windbreak and camping sites. On the eastern side of the lake there are summer cabins and villas. The northern section around Skåpafors has some of the same. The rest of the shoreline is dominated by forested slopes down to the lake.