Just over one 160 kilometres north of Sydney, Newcastle is the states second largest city and Australia's sixth. Founded as a penal colony in 1804, coal and steel became the towns major industries, eventually becoming one of the most substantial producers in the world. But with these industries now in a rapid decline, Newcastle's strong culture and heritage is assisting in the city's emergence as an important educational centre with plenty of tourist potential.

The city centre is a peninsula bordered by the Hunter River and several clean surf beaches, which have long been a mecca for surfers for their excellent breaks. Challenging surf aside, Newcastle is steeped in history, and early prosperity provided the town with many fine colonial buildings which line the wide, leafy boulevards. These superb examples of Australian architecture are complimented by fascinating historical sites and museums, beautiful parklands and gorgeous foreshores. Outside of the city, Newcastle allows easy access to the world renowned Hunter Valley wineries, a number of wilderness and wildlife reserves, and the enormous Lake Macquarie.

Four times larger than Sydney Harbour with over 170 kilometres of shoreline, Lake Macquarie is a magnet for watersport enthusiasts. Situated at various points around the edge of the lake, the towns of Toronto, Morrisset, Belmont and Swansea provide quiet, out of the way retreats. Although populations have boomed over the past decade, they still retain their sedate, holiday atmosphere.

Raymond Terrace is situated north of Newcastle on the junction of the Williams and Hunter Rivers. An important wool-shipping centre in the mid 1800's, the grand old sandstone buildings in town distinctively portray the once prosperous era. Close by, Fighter Town is an exhibit at the RAAF Williamtown base displaying the history of RAAF fighter squadrons. There's also the Hunter Region Botanical Gardens which features over 2000 native plants and several theme gardens.

Thirty kilometres east of Raymond Terrace is the white sand and aquamarine waters of the magnificent Port Stephens. One of the most unspoilt and attractive holiday areas on the New South Wales coast, the deep, calm waters of the huge harbour are protected by two large volcanic headlands and fringed by superb white beaches. The harbour which is over two and a half times larger than Sydney's, attracts dolphins, whales and most of the action with a plethora of water sports on offer However, there are many land-based activities and attractions as well catering for a wide range of holiday makers.

Development around Port Stephens is confined essentially to the southern side of the harbour on the Tomaree Peninsula. Nelson Bay is the main anchorage of the port and between it and the nearby townships of Shoal Bay, Fingal Bay, Anna Bay, and Soldiers Point there plenty of different kinds of accommodation, places to eat (unsurprisingly seafood is the speciality), wineries, and a variety of art galleries and craft markets. This side of the harbour is also gives the best access to the large koala colony at Lemon Tree Passage, Tomaree National Park and Stockton Beach.

Tomaree National Park is a 900 hectare area of golden beaches, forest and coastal heath popular with surfers, swimmers and sunbathers. In Spring the park bursts into colour with incredible numbers of blooming wildflowers. Further south-west, Stockton Beach is a spectacular sand-dune expanse (the largest in the Southern Hemisphere) where you can view Aboriginal shell middens, the wreck of the Sygna, and abandoned World War II lines of defence. 4WD tours are available into the dunes as well as horse and camel safaris.

The northern head of Port Stephens is home to the twin towns of Tea Gardens and Hawks Nest. A less developed version of the southern head, the region enjoys abundant wildlife and marks the beginning of a forty kilometre stretch of wild, secluded and pristine beaches.

An easy day trip from Sydney and only 50 kilometres west of Newcastle, the Hunter Valley is one of the world's premier wine regions. The fertile and gentle rolling pastoral country is ideal for wine growing and was first utilised for this specific purpose way back in the 1830's, making it Australia's oldest wine district. Now there are over eighty wineries in two distinct wine growing areas, the Lower Hunter and the Upper Hunter. Classic old country towns which sprouted at about the same time as the first grape vine, lend support to the wineries providing a good portion of the accommodation as well as making truly interesting diversions from Shiraz and Chardonnay.

The valley's wine-growing heartland is the Lower Hunter. The small centre of Pokolbin represents over eighty percent of the total vineyards in the Hunter. Generally they're open for tastings and cellar-door sales, and several of the larger wineries conduct tours through their operations. There's also a vast range of organised tours each with a flavour of their own, operating out of Sydney, Newcastle and other Hunter centres. Many wineries have picnic and barbeque facilities and some even come complete with restaurants, shops and resorts. Whatever your taste, a visit to the Hunter Valley is a must on any travel itinerary.

Reflecting one of the most influential groups of free settlers in the valley, Cessnock was named after Cessnock Castle in Scotland. Although the town's early prosperity was due to the rich coal seams in the area, it is now better known as an excellent launching pad into the wineries. Only thirteen kilometres south-east of the Lower Hunter, it's close proximity has lead Cessnock to become the main town and accommodation centre for the vineyards. For a hangover cure try some fresh air at the Rusa Park Zoo, nine hectares of native wildlife and bushland or The Hunter Valley Gardens, a wine theme village which includes Vineyard Resort, three restaurants and attractions, both close by to Cessnock.

Following the Hunter River, Maitland is thirty kilometres east of Cessnock. A grand old city brimming with historical buildings and churches, nowhere is 19th century Australia more apparent. Established in 1818 as a convict colony, it quickly grew and once rivalled Sydney as the state capital. There are various museums in town mapping out it's interesting history, and the buildings are best seen via the Heritage Walk. Maitland becomes more lively during Heritage Month Celebrations held every April, comprising of artistic, cultural, and vintage train exhibitions.

Further inland, the towns of Singleton and Muswellbrook lie on the New England Highway, servicing the Upper Hunter region and providing most of the accommodation. The Upper Hunter has fewer wineries, but is worth visiting as the pace slower and the scenery more photogenic. The sleepy but attractive rural town of Denham, is closer to the vineyards and offers a couple of accommodation alternatives.