Established as a military base and fishing settlement in the colony's early years, Watsons Bay is a charming suburb that has held on to its village ambience, despite the exorbitant prices paid for tiny cottages here. In comparison to Watsons Bay's tranquil harborside, the side that faces the ocean is dramatic and tortured, with the raging sea dashing itself against the sheer, 200-foot sandstone cliffs of The Gap. When the sun shines, the 15-minute cliff-top stroll along South Head Walkway between The Gap and the Macquarie Lighthouse affords some of Sydney's most inspiring views. Convict-architect Francis Greenway (jailed for forgery) designed the original lighthouse here, Australia's first, in 1818. Old South Head Rd., Vaucluse.
Visit the Travel Talk forums for help on planning your trip