Marked by the Gibraltar-like monolith of Morro Rock, which was noted by Juan Cabrillo in 1542 and now serves as a peregrine falcon preserve and nesting site, Morro Bay (pop. 10,350) surrounds a busy commercial fishing harbor, a half mile west of Hwy-1. A thin, six-mile-long strip of sand protects the bay from the Pacific Ocean, forming a seabird-rich lagoon that’s included within Morro Bay State Park, a mile southeast of Morro Rock. There’s an informative museum with displays on local wildlife, and the park also contains the friendly Bayside Cafe (805/772-1465), serving lunch and dinner. Next door, when the weather’s nice, you can rent kayaks ($6 an hour) and paddle around the estuary.
The rest of Morro Bay is pretty quiet; one unusual sight is a giant outdoor chessboard (with waist-high playing pieces), at the foot of Morro Bay Boulevard on the waterfront in City Park.