The headwaters of the creek rise between Calvert Hills and China Wall in the Northern Territory and flows in a north easterly direction. It flows through mostly uninhabited plains country through Wollogorang Station then crosses the border into the northwest region of Queensland and later discharges into the Tully Inlet and then the Gulf of Carpentaria. As it flows through the savannah country it has carved out several waterholes that are critical habitat for many animals during the dry season. During the wet season the creek is transformed when the waters breach the banks filling the floodplains create immense wetland areas. A total of eleven tributaries flow into Settlement Creek, including Bullet Creek, Nine Mile Creek, One Mile Creek, Tom Creek, Redbank Creek and Camel Creek. The creek also flows through a number of permanent waterholes such as Gudindjina Waterhole, Baladana Waterhole and Dijwalnguna Waterhole. The creek descends over its course. The catchment area occupies a total area of of which an area of is in the Northern Territory and the rest in Queensland. The watershed is wedged between the watersheds for the Calvert River to the west, the Nicholson River to the south and east. The population living within the catchment area is less than 100. The catchment area is mostly devoted to pastoralism with many cattle stations. Other streams found in the catchment include James, Scrutton and Lagoon Creeks. Important wetlands found in the catchment include Wentworth Aggregation and sections of the Marless Lagoon and Southern Gulf Aggregation. The creek has a mean annual discharge of per annum.
The traditional owners of the area are the Ganggalida and Gananggallanda peoples who know the creek as Wollogorang which in their language means "happy running waters". The creek was later named by George De Lautour in 1873 when he travelled from Townsville to Port Darwin overlanding 100 head of cattle. Upon reaching the creek he sent two of his party back to Burketown as he considered them useless in the bush. The first Europeans to visit the area was the Ludwig Leichhardt expedition of 1845 from Queensland to Port Essington. The first pastoral leases were granted to settlers in 1881 when the Chisholm family took up Wollogorang Station in 1881. The river is prone to flooding following heavy rain events. In 2006 floodwaters from the creek and its tributaries closed the Carpentaria Highway, part of Highway One. The dirt road was closed for over a week and required major maintenance following the deluge. In 2006 the creek was also earmarked by the Queensland Government for declaration under the wild rivers legislation. Settlement Creek, Morning Inlet and the Gregory and Staaten rivers were all being considered for the extra level of protection with property owners being advised of the plan and given time to comment. By 2007 all the waterways had been declared as wild rivers.
