From Watsons Bay, you walk to Camp Cove beach, up the steps, along the footpath, down past Lady Bay beach, and eventually you reach the peninsula that is South Head. From here you can look back towards the city skyline, out over to North Head and Manly and out onto the vast ocean. It's a pretty fantastic place just to sit on the grass and enjoy the sun and feel the nice sea breeze (sometimes gale) blow over you. The walk is very pleasant and takes you around the old lighthouse and back round towards Watsons Bay, but the main feature is definitely the view out over the water. If you can brave it during slightly inclement weather, the waves do really pick up and watching the Manly ferry cross between the heads can't sometimes be quite unnerving as it looks like they may just tip over! read more