The Water Gardens site is a natural drainage area that was once used for stock grazing. The site vegetation is Swamp Oak Floodplain Forest, which is listed in NSW as an Endangered Ecological Community (EEC). The land is zoned for Environmental Conservation. In 1989, the Batemans Bay Historical Society requested Council redevelop the site into a town park. The Water Gardens opened in 1999, managed by a community-driven committee. By 2012, Council had resumed management of the site. The regrowing vegetation was bordering many residential properties surrounding the park.

Grey-headed flying-foxes have been officially recorded at the Water Gardens since 2012. Though there are some reports of them occupying the site in small numbers before 2012.

Follow the promenade footpath along the Clyde River past the local restaurants and cafes toward Beach Road. Head South at Beach Road towards Batemans Bay Marina passing award-winning artwork from the annual Sculpture for Clyde competition. Continue along Beach Road toward Hanging Rock Recreation Area and Birdland Animal Park. Pass Joe’s Creek before returning to the foreshore at Corrigans Beach Reserve. At the southern end of Corrigan's Beach a staircase leads to Observation Point Lookout, which offers an impressive panorama looking out across Snapper Islands and Batemans Bay Marine Park. Length: 5km Time: 1 hour each way Grade: moderate, level, paved footpath Starting point: Clyde Street Carpark, Batemans Bay End Point: Observation Point Lookout, Observation Avenue, Batehaven