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At the southern end of the Sterling Highway lies the city of Homer, at the base of a narrow spit that juts 4 miles into beautiful Kachemak Bay. Glaciers and snowcapped mountains form a dramatic backdrop across the water.

Founded in the late 1800s as a gold-prospecting camp, this community was later used as coal-mining headquarters. Chunks of coal are still common along local beaches; they wash into the bay from nearby slopes where the coal seams are exposed. Today the town of Homer is an eclectic community with most of the tacky tourist paraphernalia relegated to the Spit (though the Spit has plenty else to recommend it, not the least of which is the 360-degree view of the surrounding mountains); the rest of the town is full of local merchants and artisans. The community is an interesting mix of fishermen, actors, artists, and writers. Much of the commercial fishing centers on halibut, and the popular Homer Jackpot Halibut Derby is often won by fish weighing more than 300 pounds. The local architecture includes everything from dwellings that are little more than assemblages of driftwood to steel commercial buildings and magnificent homes on the hillside overlooking the surrounding bay, mountains, forests, and glaciers.

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