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Sydney: Free, Cheap, and Worth It for August

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I haven't planned much of the Sydney bit of our trip (four days), but we'll be staying at the Sydney Harbour YHA and plan to walk across the bridge (the free one, not the "climb the bridge" bit) and perhaps go for a day into the Blue Mountains. We'll have been to Australia Zoo and Daintree Wild, so Taronga probably isn't on our list (or should it be anyway?)

We're all on a bit of a budget (the twins are still in college) and we like to walk and explore; museums aren't highest on the list, but history is always fun.

So I'm looking for your favorite free/cheap or worth-it-regardless suggestions for getting a taste of Sydney. I'll be there with three nieces (19 year old twins and 22 year old) in early August. To give you an example, for my city (Philadelphia) I'd suggest some Old City walks,
the Independence Hall complex, and Fairmount Waterworks for free; Rodin Museum, Italian Market, and Reading Terminal for cheap; and a carriage ride, Kimmel Center performance, and truffle burrata from DiBruno brothers for "worth it." (That's a highly subjective category, of course!)

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