This 250-acre area - the northern gateway to Phoenix - lies immediately north of Phoenix city limits and its UGB and south of the City of Medford's corporate limits and its URB. It is directly east of and immediately across the railroad right-of-way from PH-1. Most of PH-3 is developed with residential uses (some of which is at urban densities) though much of the area also contains significant commercial and industrial uses.The area is part of the Jackson County Urban Containment Boundary. The area is fully contained between the barriers of the railroad right-of-way on the west, Bear Creek and interstate 5 on the east, the City of Medford on the north, and Phoenix on the south. Except for a private, un-signaled, and unimproved railroad crossing at West Glenwood Drive, a private dead-end road, the only way in to or out of PH-3 is State Highway 99.

As mentioned, the area is fully developed with a mix of urban residential, commercial, and industrial uses. The residential uses are primarily higher-density mobile home and trailer parks, and one apartment complex. The commercial uses are mostly low-intensity, highway-dependent retail and service uses, ranging from auto dealerships to mini-storages to flea markets. Jackson County has zoned the area for a variety of urban-density classifications which mostly reflect current uses and housing densities. There are no agricultural uses in the area. The transportation artery serving the area is Highway 99, consisting of four travel lanes and a center turn lane, with no shoulders, no sidewalks for the most part, and no traffic signals. Side roads are mostly private and all dead end, either at the railroad right-of-way (on the west side of Highway 99) or at Bear Creek (on the east side). PH-3 obtains water service from the Charlotte Ann Water District (there are some private wells). The Charlotte Ann Water District is a special district established many years ago which obtains water from the Medford Water Commission. The area has public sanitary sewer service from Rogue Valley Sewer Services.