Newport Beach's pleasure-craft harbor-one of the largest in the world-brims with activity. You'll find harbor cruises that depart from the Fun Zone. While near the harbor, check out the Newport Harbor Nautical Museum. Contemporary-art lovers will revel in the Newport Harbor Art Museum's collection of California post-World War II art. Browse in the charming shops and dine in one of the distinctive restaurants. Or, paddle a kayak in the lagoon, then picnic on a private beach. Rent a bike for a trip to the Upper Newport Bay Ecological Reserve, where endangered birds live in the freshwater marsh.

In Newport Beach, you can hop on the ferryboat to Balboa Island. With tight little streets and charming cottages, Balboa Island offers the flavor of an earlier California. Balboa Pavilion, a local landmark, was built in 1906 to serve as a Victorian bathhouse and an electric-car terminal. Today, it's the departure point for harbor cruises, trips to Catalina Island, and whale-watching boat excursions-a visitor bonus from late December through March. The Pavilion is outlined by lights at night. Nearby, nature afficionados can enjoy tide pools at the Corona del Mar Marine Life Refuge.

During the Christmas season, don't miss the Newport Beach Christmas Boat Parade which is hosted by the Commodores Club of the Newport Beach Chamber of Commerce.  Each year over 100 boats decorate with lights, sound and animation as they tour the harbor for five nights from 6:30 pm to 9 pm.