Lakes Entrance is situated between Bairnsdale and Orbost at a man-made channel that links Bass Strait and the Tasman Sea with the 400 square kilometre network of inland waterways known as the Gippsland Lakes.
As a water-front town, Lakes Entrance is a very popular all year round holiday destination, including during winter months when the climate is often a few degrees warmer than Melbourne. The main thoroughfare of the Esplanade runs along the shoreline of the Cunninghame Arm inlet, with marinas and attractive foreshore gardens on one side, and a good selection of shops, restaurants and accommodation options on the other side. A number of wooden sculptures, carved out of old tree trunks, can be found along the Esplanade, and they represent images of Australia at war.
A walk across the popular landmark footbridge, which crosses Cunninghame Arm, links the town centre with the sand dunes and windswept coastline of Bass Strait, popular with surfers and swimmers. A 5 kilometre return walk from the footbridge along the narrow peninsula of land which separates the still waters of Cunninghame Arm from the choppy waters of Bass Strait takes visitors along some scenic coastline and coastal bush to the Flagstaff Lookout which provides good views over the man-made entrance into the Gippsland Lakes.