Named after the Newcastle Mine Company, this community lies on the southern shore of the Red Deer River, at the western tip of Drumheller. Set apart from the downtown core and accessed primarily by local traffic, a real draw of Newcastle is its peaceful atmosphere.

There are many homes bordering the river here, which is protected by a dyke system. Houses in this area were built between the late 1980s and through the 1990s. Older parts of Newcastle feature homes built between the 1940s and 1960s.

The primary gem of the area is Newcastle Road, which backs onto the scenic Newcastle Beach, a popular recreation locale for residents of the neighbourhood.  The Newcastle Beach area showcases baseball diamonds, maintained by residents of the community and the Town of Drumheller, park and picnic areas, as well as a newly developed boat launch to provide access to the river. It provides the perfect summer destination for residents of all ages.