L�neburg lies on the river Ilmenau, about 30 kilometres (19 mi) from its confluence with the Elbe. The river flows through the town and features in the its song; it was formerly traversed by cogs taking salt from the town to the other, larger, ports of the Hanseatic League nearby.
To the south of the town stretches the 7,400 km� L�neburg Heath which emerged as a result of widespread tree-felling, forest fires and grazing. The tradition that the heath arose from centuries of logging undertaken to meet the constant need of the L�neburg salt works for wood is not historically confirmed. More likely, the heath was originally formed by clearances during the Bronze Age. The old town (Altstadt) of L�neburg lies above a salt dome which is the town's original source of prosperity. However, the constant mining of the salt deposits over which the town stands has also resulted in the sometimes gradual, sometimes dramatically pronounced, sinking of various areas of the town. On the western edge of the town is the Kalkberg, a small hill and former gypsum quarry
