The suburb that is at the northernmost point of South Head, Sydney
. South Head and North Head are the two points that mark the entry to Sydney Harbour
How to get there: Drive up Old South Head Road, or catch a ferry from Circular Quay.
Info: Watson's Bay is an incredibly expensive place to live it. It has a lot of history to it, and beautiful views of the Harbour Bridge and the Opera House as well as the Sydney CBD (both north and south), which goes halfway to explaining the A$6million plus you'd expect to pay for a house here. But the area is gifted with some spectacular views that are free to everyone.
What to do: There's lots of good walking and exploring to do along the coastline. On one side ... the Pacific Ocean side, you have beautiful cliffs facing off into infinity, and on the other, you have the harbour. There's a really nice walking track that is great to take; it will take you past two nice beaches: Camp Cove and Lady Bay. Camp Cove is lovely, but I can't report on Lady Bay as it's a nude beach. The walk takes you past Hornby lighthouse, which is still operational.
There's a well-known seafood restaurant called Doyle's at Watson's bay. Actually, there's four of them, all within 100 metres of one another. There's Doyle's on the Wharf, Doyle's on the Beach, Doyle's takeaway and Doyle's Watson's Bay Hotel. It's frigging confusing trying to make a booking, tell ya what. Doyle's on the Beach is pricey, expect to pay A$60 per person; and frankly the food isn't that wonderful anyway (although the oysters mornay kicks ass!); better off to go to the takeaway and get stuff for heaps cheaper and eat on the seats in the park. You get pretty much the same views.