The Diamir District is bounded by the Astore District in the east, Pakistan's NWFP in the southwest (separated by the Babusar Pass or Babusar Top), Neelum District of Azad Kashmir in the south, the Ghizar District in the north and northwest, and the Gilgit District in the north and northeast.
Before the Karakoram Highway was opened in 1978, the only road reaching Gilgit town from the south was a rough track north from Balakot to Babusar Pass (via Kaghan, Naran, Besal, and Gittidas) and further north through Babusar Gah to Chilas. The road up to Besal is now in better condition, but from Besal to Babusar Pass, the road is still a rough track.