At the very southern tip of the Kenai Peninsula is spectacular Homer. I think it is one of the only places that I know of where the main street of the town goes along a narrow strip that juts miles into the sea (except perhaps in the Florida Keys?), although this was significantly altered in the 1964 Good Friday Earthquake. Surrounded by the beautiful Kachemak Bay which in turn is surrounded by spectacular mountains of the Kenai Fjords National Park, it's a beautiful spot. Originally a coal and gold mining center, it is now famous for halibut fishing.