Set on the narrow southern head of famous Sydney Harbour, Watson's Bay is one of the city's most underrated attractions. Whether it's hiking the Hermitage Foreshore Track or bathing in the buff at Lady Bay Beach, this eastern suburb is about being outside and taking in the views of the harbor. That is, of course, unless you’re seated at a café enjoying some fish and chips, which locals suggest are some of the best you'll find in all of Sydney. History buffs can wander the bluffs to see guns, cannons and military installations that have guarded Sydney Harbor, while swimmers can head to Camp Cove Beach to splash in the protected waters.
The hiking trails here run all the way to down to Bondi and up to Hornby Lighthouse, which looks out toward the northern head and all of Sydney Harbour. The easiest way to visit Watson's Bay is by jumping on a ferry or hop-on, hop-off cruise and then either exploring on your own or as part of a guided walking tour.