This coastal town occupies the southern headland of Port Stephens,flanked by Tomaree Natinal Park and has both oceon and harbour beaches.Supposedly named by Governer General Macquarie because of the sand shoals that exist there. A paved walking track leads to the summit of Tomaree Head,rated as one of the top 10 panoramic views in the world.

A 1.5 hour return walk includes a visit to WWII gun emplacements. Shoal Bay, a pristine sandy beach with cobalt blue waters and resident dolphin population. Shoal Bay can be reached by road approximately two hours north of Sydney.