Arising southeast of Hickman Butte in the Mount Hood National Forest, the river flows northwest between North Mountain on the and Goodfellow Lakes on the. Turning west, it passes south of Aschoff Buttes before receiving its only named tributaries, Bow Creek and Arrow Creek, both from the right. As the river nears a United States Geological Surveystream gauge at river mile 1.95 or river kilometer 3.14, a ridge, the Devil's Backbone, separates the Little Sandy from the Sandy River to the south. Just below the stream gauge, the Little Sandy passes the former Little Sandy Dam. The river enters the Bull Run River about from the larger stream's confluence with the Sandy River. Falling between source and mouth, the river's average loss of elevation is about. Most of the course of the river lies within the BRWMU, a federally protected area of surrounding the main drinking water supply for Portland. Access to the BRWMU is generally limited to government employees and guests on official business, and security guards keep watch on its three gated entrances. In 1996, the U.S. Congress banned commercial logging on all federal lands in the Bull Run River watershed and, through the Little Sandy Act of 2001, extended the ban to include all federal lands draining into the Little Sandy River and the lower Bull Run River.
Discharge
The USGS monitors the flow of the Little Sandy River at a stream gauge from the mouth of the river. The average flow at this gauge over the 89 years from 1920 to 2008 was. This was from a drainage area of. The maximum flow recorded there was on November 20, 1921, and the minimum flow was on August 20 and September 16 and 17, 1940.
Little Sandy Dam
From 1912 through 2008, the river's flow was altered by the Bull Run Hydroelectric Project, which diverted water from the Sandy River at the Marmot Dam to the Little Sandy River at the Little Sandy Dam. Water was then diverted from the Little Sandy River to Roslyn Lake through a wood box flume. The artificial lake supplied the 22-megawatt Bull Run hydroelectric powerhouse and emptied into the Bull Run River. Engineers demolished the high Marmot Dam for PGE in July 2007 and the high Little Sandy Dam in 2008, and Roslyn Lake ceased to exist. The decommissioning restored the Little Sandy River to steelhead and salmon runs for the first time in nearly a century. PGE, the dams' owner, donated of land near the dams to the Western Rivers Conservancy for a nature reserve and recreation area. In May 2009, a fish biologist reported that salmon and steelhead were spawning upstream of the former dam.