At the southern end of the Waitaki is the small town of Palmerston, located  near the banks of the Shag River,
five kilometres inland from the Pacific coast.
Between Palmerston and the sea is the lone hill of Puketapu (Maori for sacred head),
with a monument at the top dedicated to the 19th century Otago politician Sir John McKenzie.
Palmerston is a popular place for a stop and has a gift shop, a café and the McGregors Bakery & Tearooms,
where you can try McGregors pies.

On the drive north from Palmerston take a detour through the scenic Trotter’s Gorge native forest.
Here you will find imposing limestone cliffs towering over a narrow valley.
At the scenic reserve you will find a picnic area and walking tracks through the native bush.


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