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Sydney is the nearest major city to Katoomba and offers all the trappings of a cosmopolitan city plus easy access to loads of fantastic beaches. While much of the Sydney area is decidedly urban, there are plenty of pristine natural areas within a short jaunt from town, including Royal National Park to the south and Ku-ring-gai Chase National Park just north of the metropolitan area.
Spread out over 1,200 hectares, just north of Fish River, Eusdale Nature Reserve near Katoomba is an ideal spot to go for a hike, particularly if you're trying to get away from crowds. A 10-kilometre trail runs through the reserve and gets relatively few hikers, meaning you may very well get the whole place to yourself.
The best time to visit Katoomba and the surrounding Blue Mountains region is during the spring, when temperatures are pleasantly warm but rainfall hasn't peaked. Summer gets a bit of rain, which can put a literal damper on outdoor fun, and while winters are relatively drier, they can be cool and snowy. If you do come in winter, try to plan your visit to coincide with the annual Winter Magic Festival to see the entire town transformed into an outdoor performance venue.