Heading inland from Nowra is the village of Kangaroo Valley , also serviced by a daily bus. Mountainous forest rises all around the village. The village is beside the Kangaroo River, and nearby are Tallowa Dam and the Shoalhaven River, great sites for canoeing and rafting , including overnight camping trips. Kangaroo Valley also has fantastic bike rides . The National Parks and Wildlife Service have an excellent walk guide to Kangaroo Valley and adjacent National Parks.
Camping is the best cheap accommodation.
Still in the Shoalhaven region, Ulladulla has a good backpacker's lodge , where they will help you get out and about to explore the National Parks and walking trails in the area. Murramarang National Park extends along the coast south from Ulladulla. There is beautiful spotted gum and burrawang forest dotted with Livistona palms and pockets of rainforest. The forest runs right down to golden beaches and sparkling surf. Good bushwalking trails start from Pebbly Beach, which also has very friendly kangaroos and birds.