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South of Bunbury the Bussel Highway curves west around Geographe Bay to BUSSELTON , named after a prominent pioneering family. The town, sheltered from the ocean's currents and swells, is a popular "bucket and spade" resort where parents can be sure their kids won't be swept away or dashed onto the rocks. There's a museum (Mon & Wed-Sun 2-5pm; $4) in the Old Butter Factory, off Peel Terrace, with an exhibit on the ill-fated Group Settlement Scheme . During the 1920s, overseas families with little or no farming expertise were induced to settle the Southwest - most failed miserably and ended up rotting in "humpies" such as the one on display. You're unlikely to want to stay with the holidaying masses and better off heading for Dunsborough, but there's backpackers' accommodation at 14 Peel Terrace (tel 08/9754 2763; under $20) if you get caught out. After Busselton, the highway turns south towards Margaret River, though continuing west brings you to DUNSBOROUGH , 21km from Busselton, a small holiday resort with an excellently located YHA hostel (tel & fax 08/9755 3107, dunsboroughyha@hotmail.com ; under $50). Situated 2km southeast of town (get off the bus at Quindalup), right on the beach, the modern hostel offers bike hire and has a happy, family atmosphere. The Dunsborough Inn (tel 08/9756 7277, fax 9756 7377, dunsinn@wn.com.au ; under $70), on Dunn Bay Road, has good-value self-contained units and motel rooms, as well as dorms. A step up in quality is the Mercure Inn (tel 08/9756 7711, fax 9756 7722, mercure@netserve.net.au ; $70-90) which is also the town's only pub . Cafe Ibis , across the road from the post office, has interesting if pricey meals while My Thai , next to the service station, gives Dunsborough's best impersonation of Bangkok. With numerous wrecks and little tidal variation, Geographe Bay is ideal for diving , with several places in the main shopping precinct renting equipment and boat charters. Cape Naturaliste , 14km northwest of the resort, is the less impressive of the two capes which define the Margaret River Region. Its truncated lighthouse (Mon & Wed-Sun 9.30am-4.30pm; $3) is open for inspection, and along the way there are turn-offs to secluded beaches with the Sugarloaf offering particularly fine views.
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