Sydney has the sights, the beaches, the weather-—and the easygoing locals—to give any destination a run for its money. Here's where to find the city at its best

Sydney, long celebrated for its exhilarating beauty—with that dazzling harbor, how could it not be?—is a city on the rise. It's charming, casual, and proud (like its residents, some would say), and the vibrancy and sophistication that infected Australia's largest metropolis during the 2000 Olympics have lingered.

The draws of the Sydney Opera House and the Sydney Harbour Bridge, and Darling Harbour's Sydney Aquarium and Wildlife World animal park, are along the water. This is Sydney at its most fashion-shot-worthy; to get an eyeful, follow the lead of our fashion team, who rented a yacht for our feature story. Flagship Charters' fleet includes motorized and wind-powered yachts, and conducts sailings that vary from sunset cocktails to overnight runs west to the Parramatta River (9555-5901; from $345 per hour).

Many inner-city suburbs—Darlinghurst, Elizabeth Bay, Kings Cross, Potts Point, and Surry Hills,- among them—have bohemian vibes and streets lined with independent shops and galleries. Along the eastern coastline stretch beaches such as the popular Bondi.

The country and city code for Sydney is 61-2.

Lodging
Six Sydney properties rank on Condé Nast Traveler's 2008 Gold List. Of these, the Four Seasons (9238-0000; doubles, $299–$395), InterContinental (9253-9000; doubles, $277–$624), Park Hyatt (9241-1234; doubles, $543–$630), and Sydney Harbour Marriott at Circular Quay (9259-7000; doubles, $286–$380) face the harbor and offer Opera House or bridge views. The Sheraton on the Park (9286-6000; doubles, $325–$477) and the Westin (8223-1111; doubles, $295–$360) are in the Central Business District (CBD) but within walking distance of the harbor and well-manicured city parks.

Many of Sydney's smaller, more fashionable accommodations are clustered around buzzing Potts Point and Darlinghurst, a stroll east from the CBD. The newest: The Storrier, a 69-room property named after contemporary artist Tim Storrier, whose Evening Blaze Line hangs in the foyer. Because of the Art Deco building's unique proportions, no two rooms are the same size or shape, but all have brown tones and black-and-white highlights (8988-6999; doubles, $250–$275). Some suites at the Diamant Hotel have private courtyards with views down William Street and to the city (9295-8888; doubles, $198–$302), while Medusa's 18 rooms blend bright colors and modern design in a 19th-century mansion (9331-1000; doubles, $269–$304).

In the financial district, Establishment is the choice for laid-back glamour and, thanks to its hard-to-find entrance, privacy. Its 31 rooms are decorated in two styles: with Japanese overtones, or more traditional in caramels and creams (9240-3110; merivale.com; doubles, $217–$300). Accommodations are in short supply on the beaches close to the city. At funky Ravesi's, opposite Bondi, most of the 12 rooms have views, although only the deluxe split-level apartment faces the beach (9365-4422; doubles, $208–$282).

Our fashion crew shot at the Harry Seidler Apartments, residences named after the leading proponent of Australian modern architecture— who designed them and lived there—near the northern end of the Harbour Bridge. The private quarters are not open to the public, but you can be surrounded by Seidler's signature sleek lines and glass walls at the Meriton World Tower. Recently opened near Darling Harbour, the 74-story building—with short-term-stay apartments featuring granite baths and high-end kitchens—was one of Seidler's last projects before his death, in 2006 (9287-2890; doubles, $173–$372).

Dining
Sydneysiders pride themselves on their city's cuisine. From waterfront cafés to upscale restaurants, chefs boast of their training and of the provenance of their fresh produce. (Caveat eater: Australians call an appetizer an entrée, and an entrée a main course.)

Locals love a view with their meals, and it would be a shame for a visitor not to enjoy a few. Bondi's Icebergs Dining Room & Bar, with its splendid Italian menu, soaring opera music, and waves crashing on the rocks below, is a Sydney institution. Some say it's a waste to come here after dark, once the daytime vista has disappeared, but evenings are particularly dramatic (1 Notts Ave.; 9365-9000; main courses, $33–$42). Try the Barossa chook liver pâté at Sean's Panaroma, the low-key spot at Bondi's north end, where Sean Moran prepares simple seasonal food (270 Campbell Parade; 9365-4924; main courses, $23–$39). Behind Darling Harbour, in an unlikely location in the Star City Casino, is Astral. Sean Connolly, an expat Brit with classical French training, is the executive chef, the views of the city and harbor are sublime, and the mood is relaxed but elegant. Feeling flush? The $1,000 menu dégustation features truffles, abalone, lobster, and Iranian caviar (80 Pyrmont St.; 9777-9000; three courses, $90). Watch the ferries come and go, if you can tear your eyes away from the bridge, at Circular Quay's Cafe Sydney, where Hollywood celebs dig into the seafood dishes when they're in town (31 Alfred St.; 9251-8683; main courses, $26–$34).

Their windows may not frame postcard views, but the following restaurants are among the most popular and represent a neat cross section of the city's increasingly cosmopolitan palate. All of Sydney seems keen on casual meals, with dishes shared among friends, and no place does it better than Surry Hills' hip Bodega, a tapas bar with menu items and a wine list from Spain and South America (216 Commonwealth St.; 9212-7766; tapas, $6–$26). Down the street, the cool Longrain serves fine Thai fare (85 Commonwealth St.; 9280-2888; main courses, $15–$50). Nearby, you'll find Naples-worthy pies at the chic Pizza e Birra (500 Crown St.; 9332-2510; main courses, $18–$32). Three doors down at Bird Cow Fish, chef Alex Herbert whips up Italian-inflected dishes using the best local ingredients (9380-4090; main courses, $16–$26). In Potts Point, book seats at the sushi bar at Busshari to watch the chefs prepare Japanese food so fresh it almost has a pulse (119 Macleay St.; 9357-4555; main courses, $13–$29). At the neighborhood's iconic Fratelli Paradiso, you might sit next to a politician, designer, or news anchor tucking into Italian fare, including the signature calamari Sant' Andrea (12–16 Challis Ave.; 9357-1744; main courses, $21–$30). Darlinghurst's A Tavola has a small menu with glorious fresh pasta. The buzz around the namesake communal table reaches a crescendo at 10 p.m., when everyone's satiated and sipping digestifs (348 Victoria St.; 9331-7871; main courses, $22–$39). Just north of the CBD in the historic Rocks district, Neil Perry recently converted his haute flagship into Rockpool (fish), a smart seafooder (107 George St.; 9252-1888; main courses, $26–$52).

Nightlife
The city's diverse tribes ensure that Sydney in the wee hours is anything but boring. You can dance all night with barely clad teens at mega-clubs, listen to local bands in tiny pubs (no longer smoky, courtesy of an indoor ban), or nurse a Negroni in a glitzy cocktail bar. Ever since Justin Hemmes recently opened Ivy, the collection of restaurants and bars east of Darling Harbour has become the place to be—especially among the confident, who strut their swimwear-clad stuff around the pool (320-330 George St.). Dance to DJs at another newcomer, Trademark, whose entrance echoes the nearby Coca-Cola neon billboard (1 Bayswater Rd.). Around the corner is Ju Ju, where you can eat sushi or test your vocal cords at a favorite karaoke venue in town (Shop 320 Kingsgate Shopping Centre, Bayswater Rd.).

Quirky is the word for Elizabeth Bay's Gazebo Wine Garden; the stuffed fox hanging from the ceiling and the faux greenery behind the bar belie the serious wine list (2 Elizabeth Bay Rd.). For the real Sydney, have a cold one at the Hotel Hollywood, a Surry Hills pub. The rec-room decor hasn't changed in years, and the live music on the tiny stage is an irregular event, but it's still buckets of relaxed fun (2 Foster St.). The Gay & Lesbian Mardi Gras is one of Sydney's premier events, but if you can't be there in February or March for the festivities, get a taste of them anytime at The Colombian in Darlinghurst, where patrons dance upstairs or vie for a ground-floor window seat to admire Oxford Street's parade of humanity (117-123 Oxford St.).

Shopping
Local fashion designers embody the Australian aesthetic of casual sassiness, incorporating lots of color and the promise of tanned skin. Many of the most feted have flagship stores in Paddington, with several on Oxford Street. Scanlan & Theodore, one of the country's leading labels, puts out sexy feminine silhouettes (122 Oxford St.; 9380-9388). It's no surprise that Australian brands do fantastic swimwear, but Zimmermann is beyond compare for body-con bikinis. Think paisley, spots, and florals this summer (387 Oxford St.; 9357-4700). Dinosaur Designs began selling resin jewelry in 1985, and it continues to innovate with bold fashion pieces and housewares (339 Oxford St.; 9361-3776).

Kirrily Johnston is known for luxe fabrics, elegant shapes, and one signature color per collection—this season it's aqua (8 Glenmore Rd.; 9380-7775). In Surry Hills, Collect at Object Gallery has glassware, ceramics, jewelry, and furniture from Australia's best artisans (417 Bourke St., Surry Hills; 9361-4511).

Reading
Get beneath the surface of the city with a selection of books that reveal many layers, not all of them sunny. In Sydney: The Story of a City, Geoffrey Moorhouse tracks its changes up to the 2000 Olympics (Harcourt, $25). Entertaining but darker is John Birmingham's Leviathan: The Unauthorised Biography of Sydney (Vintage, $18). Returning from New York after ten years, Peter Carey defines the city using the four elements—fire, air, earth, and water—in 30 Days in Sydney (Bloomsbury, $17).

Sydney barrister Richard Beasley's satire, Hell Has Harbour Views, has protagonist Hugh Walker trying to find his soul in a big law firm (Macmillan, $24). The only thing that's hard to believe about Richard Flanagan's The Unknown Terrorist, set in a brightly lit but paranoid inner-city Sydney, is that the main character, a pole dancer called the Doll, picks up a straight man at Mardi Gras (Grove/Atlantic, $14).