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, was founded in 1890. You can still see some of the old weathered-cypress homes scattered along narrow, crushed-gravel streets. The secluded off-the-beaten-path town has been noticed 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.