Madison is an unincorporated community and census-designated place in Dorchester County, Maryland, United States. The population was 204 at the 2010 census.Madison is located in western Dorchester County, at the south end of Madison Bay, an arm of the Little Choptank River and part of the Chesapeake Bay estuary system. Maryland Route 16 passes through the community, leading northeast 10 miles to Cambridge, the county seat, and southwest 5 miles to Taylors Island.According to the United States Census Bureau, the Madison CDP has a total area of 3.2 square miles, of which 3.2 square miles is land and 0.04 square miles, or 1.26%, is water.