Toontown is situated in the southwestern corner of the park, in between Fantasyland and Tomorrowland. As its name suggests, Toontown is a fanciful representation of the wacky cartoon community where all of the Disney characters live. Toontown consists of a colorful collection of miniature buildings, all executed in exaggerated cartoon style with rounded edges and brilliant colors. Among the buildings are Mickey's and Minnie's houses, both open to inspection inside and out.

Toontown is rendered with masterful attention to artistic humor and detail. The colorful buildings each have a story to tell or a gag to visit upon an unsuspecting guest. There is an explosion at the Fireworks Factory every minute or so, always unannounced. Across the street, the sidewalk is littered with crates containing strange contents addressed to exotic destinations. If you pry open the top of one of the crates (easy to do), the crate will emit a noise consistent with its contents. A box of "train parts," for example, broadcasts the sound of a racing locomotive when you lift the top.