Beaver Creek has its source in northern Douglas County. It drains a total watershed area of 425 square miles. Grassland covers 183 square miles, or about 44%. The northern part of the watershed is mostly gently rolling hay and pasture land. Forest and woodland cover 230 square miles, or 54% of the watershed, most of it in the rugged hills to the south. Part of the forested area is within the boundaries of the Mark Twain National Forest. A small portion of the land, less than 0.25% of the total, is in row crops. There are no sizeable towns within in the watershed. Bradleyville, at the crossing of Routes 76 and 125, is the only town with a business district. The town of Ava, the Douglas County seat, lies along the eastern edge of the watershed.

In northeast Taney County Beaver Creek is joined by its tributary, Little Beaver Creek, which drains the northwestern part of the watershed. From there Beaver Creek continues on for another 16 miles to Bull Shoals Lake.