Get out and about on the water! Paihia is a great hub for the Bay of Islands. There are various boat trips to visit outlying islands (one includes swimming with dolphins), or you can go kayaking or parasailing.

I recommend the Te Waka tour run by a couple of local lads (there are leaflets in the Awesome Adventures office by the waterfront). You paddle around the bay in an outrigger canoe (like the Maoris use – but a modern version :) and visit the Waitangi Treaty grounds, where you can visit the world’s largest Maori war canoe (“waka”).