Undalya (Postcode: 5451) is a small rural town on the southern edge of the Clare Valley, in the mid north of the state of South Australia. It is located on the Horrocks Highway approximately halfway between the towns of Auburn and Rhynie, at the junction of the River Wakefield and Pine Creek. To the east lies the town of Saddleworth and to the south-west lies the town of Balaklava. The town was officially gazetted as Undalya in 1859.