The carpal tunnel is located at the base of the palm and is bounded on three sides by carpal bones and anteriorly by the transverse carpal ligament (Flexor Retinaculum). The median nerve runs inside the carpal tunnel with the flexor tendons and their synovial sheaths. Any condition that causes an increase in swelling of the contents of the carpal tunnel can result in compression of the median nerve.

The image shows a cross-section view of the wrist illustrating the interrelationship between the wrist structures.