Denver City is located southwest of Lubbock between Seagraves and the New Mexico state line along Hwys 83 and 214, just inside Yoakum County.
Because Denver City is situated near the Gaines County line many of its businesses are able to serve both counties. Gas plants, cotton refineries, and cattle feedlots are among the local industries.
The town prospered through the 1980s as the largest town in Yoakum County and headquarters for most of the county's oil-related business. The town declined somewhat in the 1990s as its population fell from 5,251 in 1990 to 3,985 in 2000.