Grayton Beach

The 26-mi stretch of coastline between Destin and Panama City Beach is referred to as the Beaches of South Walton. From the middle of this mostly residential stretch of the Panhandle you can see the monolithic condos of Destin and Panama City Beach in either direction, like massive bookends in the distance, flanking the area's low-slung, less imposing structures. A decidedly laid-back, refined mood prevails in these parts, where vacation homes go for millions and selecting a dinner spot is usually the day's most challenging decision. Accommodations consist primarily of private-home rentals, the majority of which are managed by local real estate firms. Also scattered along Route 30A are a growing number of boutiques selling everything from fine art to unique hand-painted furniture, to jewelry, gifts, and clothes.

Inland, pine forests and hardwoods surround the area's 14 dune lakes, giving anglers ample spots to drop a line and kayakers a peaceful refuge. Grayton Beach, the oldest community in this area, reached its 100-year mark in 1990. You can still see some of the old weathered-cypress homes scattered along narrow, crushed gravel streets. The town has taken off with the addition of adjacent WaterColor, a high-end development of vacation homes with a stylish boutique hotel as its centerpiece. The architecture is tasteful, development is carefully regulated—no buildings taller than four stories are allowed—and bicycles and kayaks are the preferred methods of transportation. Stringent building restrictions, designed to protect the pristine beaches and dunes, ensure that Grayton maintains its small-town feel and look.