If you are lucky enough to have ferry service in Sydney, you can easily take a decent slice of the tourism industry in Sydney. Watsons Bay is one of the most famous ferry rides through the harbor. This iconic bay is the first line of defense against the pacific ocean, and the lighthouse point (not pictured) is still in HMAS (Her Majesty's Service). We didn't attempt the long hike to the end, but opted for a stroll through nearby Gap park. Almost every lighthouse in Sydney is closed to tourists, but should you attempt a breakin would offer amazing ocean views.
Gap Park Lighthouse, one of 2 at Watsons Bay
As with most Sydney harbor side tourist locations, skiff and boat rentals are an option. There is also a great covered playground in the middle of Robertson park. The hilly scenic neighborhood just south of Watson Bay, Vaucluse, is said to be second in wealth only to Mosman. It was a gorgeous drive but should we return, I would attempt the long hike through the HMAS base to the REAL lighthouse at the end. Its worth nothing Watson Bay is one of the very few you can actually watch the sun SET in Sydney, which makes it a popular evening destination and home to several exceptional restaurants.