Sydney is overwhelming me....in a great way. There seem to be lots of little towns and places to visit via water taxi/boat. Any favorite recommended spots to ferry over to and stroll around, particularly with an 8 and 6 year old?? Oh, and I was reading something about a boat that delivers mail to smaller towns??? Thanks

Take the ferry to Taronga Zoo.
There's a cable car which runs from the jetty to the Zoo. Your kids will love it.

Taking the Manly Ferry to Manly is another possibility.

There are great historical tours on Cockatoo Island that can be booked through Sydney Harbour Trust. You get there by taking the ferry that goes to Greenwich:
http://www.cockatooisland.gov.au/see/tours/guided.html

You can also hire kayaks on the island.

Water taxis are a fairly expensive way to travel, whereas if you buy a ticket called a "Ferry 10" each ride is about $3 in the inner harbour area. You can buy these from Circular Quay, or if you are staying in one of the suburbs served by ferries, the newsagents sell them.

I'm puzzled by the boat delivering mail, I can't think where that could be. Scotland Island and Mackerel Beach maybe?

Here's the Riverboat postman link:
http://www.hawkesburyriverferries.com.au/links.html

Hey Bokhara you are a mine of information!

That looks like a terrific trip to do even for locals.

Aw shucks, Susan ... just Googling

Try Fort Denison (Pinchgut) in Sydney Harbour.
Catch the ferry at Circular Quay and just enjoy the ride. It is a real fort in the middle of the harbour built of stone and has a tower and canon that is actually used - they fire it at one o;clock I think. There is also a restaurant in the fort, a small museum and a small grassed area.
Goat Island used to be open to the public too - it was used for boat building. Convicts used to be imprisoned there and there is a rock where a convict was chained up for 7 years. A bench/bed of sorts was hewn out of a rock for him.
Goat Island has lots of space for children to run around in. There is also a museum there too. Might be guided tours only.

We enjoyed the trip on the Riverboat Postman, by taking the train to Brooklyn. However, it is a long, leisurely trip without much to do but look at the scenery and that's a long 4 hours for children your ages. The 'tea' is one cup and one cookie - we were starved when we got back, but there is a wonderful fish and chip place right on the pier.

If you catch a ferry from Circular Quay to Mosman Wharf you can then walk westwards around Mosman Bay to Cremorne Point and catch a ferry back to the Quay from there - it takes 20 -30 minutes from memory, with nice harbour views in that direction.

As a Melbournian I love the ferry trip to Watsons Bay . Go , lunch and if it is a sunny day time it to be there or travelling back on it to the city around sunset as it is wonderful.

JohnFitz;
Lavici & I did just that yesterday .. took the Watsons Bay jetcat, lunch at the pub, bus to Bondi beach then walked around the cliffs to Bronte. Bus back to the city.

It was one of those glorious Autumn days and I think your kids would love it, desertchick. At the Watsons Bay pub (straight ahead as you disembark the ferry/jetcat) - entry on the left hand side of the street, there's an open air area with tables & chairs and a killer view right down the harbour to the Bridge. Food is good quality, well presented, with a wide choice (and a kids' menu). It's very casual- find a table - order at the kiosk, they give you a beeper & when it buzzes, you go & collect your food. Wines by the glass and v.reasonably priced.

Bus (# 380) from Watsons Bay to Bondi Beach $3 adult (about 10-15 mins).
The walk from Bondi to Bronte is absolutely gorgeous - sensational rock formations, the ocean, Tamarama beach, fittness stations here & there. At Bronte, there's a cluster of cafes and a bus stop for return to the city/Bondi etc. $3/adult to Charing Cross. (about 3/4 of the way to the city).

I think this would be an ideal outing for your two - nothing takes very long; variety, food stops, lots to see and some activity.

Bokhara just another example of 'simpatico '.

True, John Fitz; lavici was sorry not to catch up with you in your town. She would have absolutely loved William Ricketts.

Darling Harbour is also fun for children - play area, boats on a little lake, and area to run. Plus the best ice cream at Llindt restaurant!! And if you, and they, are into souvenir shopping try Paddy's
Market.

Darling Harbour and Pyrmont are worth a go. Check Out.

1.http://pyrmontvillage.com.au/

2.http://www.cityhobo.com/

Both these sites will give you alot of information about both those suburbs.

Thank you all for wonderful information. I am doing my homework and getting organized, looking forward to exploring with our kids, taking short hikes/walks, managed by ice cream and pub stops!! ( though if your pubs serve anything like nachos or have cool live music, kids will be just FINE....??!!)
We are staying in Darling Harbour as a friend said it would be good with the kids, so we have plenty of options to consider, thanks!!