Watsons Bay is Australia's oldest fishing village and remains a thriving local inlet popular for its scenic locale and fresh seafood. Overlooking a prime expanse of Sydney Harbour, Doyles on the Beach has long been a fine dining Sydney institution for those looking to experience fresh fish, lobsters, prawns and more.For those wishing to settle into a longer afternoon of views, cocktails and the warm bustle of a friendly crowd, the Beach Club and the Watsons Bay Boutique Hotel provide great waterside venues. One of the best ways to enjoy the harbour views around Watsons Bay is to take a coastal walk. There are two walking paths from Watsons Bay wharf – one which takes you north past Lady Bay Beach, which permits nude bathing, and then on to South Head where you can see the Hornby Lighthouse. The other walking path meanders south past 'The Gap', an ocean cliff facing the Tasman Sea, and then along past the Signal Station and Macquarie Lighthouse. Watsons Bay is also only a short drive away from Sydney's iconic Bondi Beach. To visit Bondi after spending a day at Watsons Bay, simply travel south along Old South Head Road and then turn left onto Military Road (which changes to Campbell Parade) to enjoy the sights and sounds of Australia's most loved beach. The Line 380 bus travels along this route routinely.