Tucked into the rolling landscape of northern Alberta, Goodfare sits along Highway 671, roughly 14 kilometres west of Highway 43 and approximately 60 kilometres northwest of Grande Prairie. It falls within the boundaries of the County of Grande Prairie No. 1, a large rural municipality that encompasses much of the region surrounding the city of Grande Prairie.
Before it became known as Goodfare, the area went by the name Kempton. In April 1919, following a petition by local residents seeking postal service, a post office was established to serve the growing community. The name chosen at the time was Goodfair, considered fitting and descriptive of the area and its character. However, because a post office by that spelling already existed in Saskatchewan, the name was adjusted to its current form, Goodfare, to avoid confusion. John Third took on the role of first postmaster. The hamlet recorded a population of 11 in the 1986 Census of Population, reflecting its nature as a small, close-knit rural settlement in the greater Grande Prairie region.