Margaret River, Australia

Capital City

This small town of 7,430 people in Western Australia's South West region is all about the wine and the waves, but don't expect an easy life. The bureaucracy is a persistent headache, with the town's history of constantly changing its name and boundaries. And the dry, windy summers create a high risk of bushfires that residents must contend with. Still, if you're a wine connoisseur or avid surfer, Margaret River's world-class vineyards and renowned surf breaks may be worth braving the local red tape.