Caney Creek, a spring-fed perennial stream, rises two miles northwest of New Waverly in southeastern Walker County (at 30°34' N, 95°27' W) and flows southeast for forty-eight miles through eastern Montgomery County to its mouth on the East Fork of the San Jacinto River, just above Lake Houston in northeastern Harris County (at 30°05' N, 95°09' W). The upper creek forms part of the southwestern boundary of Sam Houston National Forest. The stream traverses rolling to nearly level terrain surfaced by sandy and loamy soils. Along its banks grow pines, including loblolly and shortleaf, and hardwoods, including elm, hickory, oak, and sweet and black gum. Settlement in the vicinity began during the mid-1830s. In the late 1860s what is now the community of New Caney was founded on the west bank of the lower creek. Waukegan, on the west bank of the middle creek, served as a station on the Gulf, Colorado and Santa Fe Railway from the late 1800s until the 1930s. During the local oil boom of the early 1930s, Grangerland was established on the west bank of the middle creek. The town of Cut and Shoot was incorporated on the west bank of the middle creek in 1970. Groceville and Black Diamond are on the east bank of the middle creek. Walden Woods, Dogwood Acres, and Dunnam, suburbs of Houston, lie on the west bank of the lower creek near its mouth.