Painted Hills, Indiana  Painted Hills is an unincorporated community and census-designated place in Jackson Township, Morgan County, in the U.S. state of Indiana. Its population was 677 as of the 2010 census. The community is located on the shores of Lake Holiday southeast of Martinsville. The community has 1 pub/restaurant mix and an office in the "Clubhouse". Painted Hills is located at . According to the U.S. Census Bureau, the community has an area of , of which is land and is water.