South Bethany is also somewhat of an extension of Bethany Beach although it too has a flavor all its own. An incorporated town, South Bethany is considered a hidden gem with its positioning between the Atlantic Ocean and a canal system (a portion of which is flanked by a trail) leading to the Little Assawoman Bay. It consists mostly of residential homes virtually all of which are within easy walking distance of the beach. Like its neighbors to the north, the Route 1 bike paths provide tremendous recreational opportunities. The bayside offers great sunset views over the canal that provides for fishing, boating and other inland waterway activities. South Bethany, in addition, is situated along some extremely wide stretches of beach and the family-oriented nature of the town makes it ideal for strolling along sand-strewn streets.