These are the 14 best things to do in Watsons Bay: Lady Bay Beach. Camp Cove Beach. Hornby Lighthouse. The lookout at The Gap. Doyles. Picnic with a view. A sundowner at Watsons Bay Hotel. Brunch at Dunbar House.. Watsons Bay is one of the best spots in Sydney to spend a summer day with lots of beach-based things to do in Watsons Bay. Having seen photos of the gorgeous beaches, it was one of my top places to visit after moving to Australia.. Watsons Bay, on the eastern edge of Sydney Harbour, is the place to go if you want a break from the crowds at Bondi and Manly.

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Early Settlement. Watsons Bay was named after Robert Watson, a sailor who arrived in Australia in 1788. The settlement of Watsons Bay played a significant role in Sydney's history. It was here that Governor Phillip first landed, beginning a new chapter of European settlement in Australia.. Things to do. Steeped in history, Watsons Bay is rich in Indigenous and colonial heritage. T ackle the Federation Cliff Walk, a five-kilometre clifftop walk with postcard views out to the Pacific Ocean stretching from Watsons Bay to Dover Heights, enjoying the dramatic views of the 80-metre sandstone cliffs at Raleigh Reserve and The Gap along the way.