Fraser is located at Kilometer 36.5 of the South Klondike Highway in northwestern British Columbia. It is 34 km north of Skagway, Alaska and 69 km south of Carcross, Yukon. It is a Canada Border Services Agency ("Canada Customs") port of entry and a maintenance camp for the Yukon's Department of Highways and Public Works, which maintains this section of highway under contract to the British Columbia government. Fraser has no permanent residents and no businesses. A privately-owned micro-hydro project supplies electricity to the community. All housing is for Customs and Highways employees.
Fraser began as the location of a water tower for the steam engines of the White Pass and Yukon Route railway, which was built in 1898-1900 to connect Skagway and Whitehorse. The water tower structure still stands, but today the railway primarily uses Fraser as a place to transfer passengers between buses and trains.