Much of the town is surrounded by water; Lake Munmorah, Budgewoi Lake and the Pacific Ocean. An Ideal spot for water enthusiasts. Long an area of retirees and holiday homes, rising housing prices in the Sydney metropolitan area during the 1990s saw it become a sleeper town, with increased numbers of people commuting to the Sydney metropolitan area. The last decade has seen an important change in Budgewoi with the influx of people bringing greater infrastructure and development to the suburb. Coles opened its doors in 2005 expanding the central business area and drawing businesses and consumers to the area. It is still a relatively quiet, coastal town.