The Yarra River is truly the heart of leisure and tourism in Melbourne. It gives the city its freshness and focus and is the site of non-stop activity. All manner of boats ply its waters and a host of cultural and entertainment facilities grace its banks including museums, galleries, aquarium, concert halls and theatres.

In fact, the discovery of the Yarra was pivotal to the founding and development of Melbourne. The fresh water it provided was vital to the new city. The river was called Birrarung by the indigenous Wurundjeri people and was given the name Yarra Yarra by John Helder Wedge of the Port Phillip Association who thought it was the Aboriginal name.

The Yarra River begins in the highlands of Mount Baw Baw in Victoria's West Gippsland region and flows down into Port Phillip Bay, home to the Port of Melbourne, Australia's busiest seaport.

So how to best enjoy the Yarra on your holiday? Here we'll look at the north bank, the booming new developments on the south bank, and then at some cruises that will take you along this delightful river.

The north bank of the Yarra marks the southern edge of the CBD. A walk along Birrarung Marr, the stretch of water that runs from Federation Square to the Melbourne Cricket Ground is an especially fine location to enjoy views of the Melbourne skyline.

Though the north bank has much to see and do, it's the south bank of the Yarra that the more happening place. Crossing over Queensbridge Street brings you to Southbank Promenade. This is a fine place to dine while enjoying superb river views. The nearby Southgate Shopping Complex offers three floors of fascinating specialty stores.

Sunday is the best time to visit the Southbank as it's the site of the Arts Centre Sunday Market, just the place to pick up some local crafts and Australian souvenirs. Also nearby is the Crown Casino and entertainment complex which features food courts, cafes, shops, and nightclubs.

Exploring the riverbanks is a wonderful experience but to truly experience the Yarra, you have to take to the waters. You have many options here, including a leisurely scenic cruise, penguin trip, ferry ride to Williamstown, romantic gondola or water taxi ride.

You can choose from a range of sightseeing cruises, either upstream to the scenic parks and gardens of the Yarra River, or downstream to the Melbourne Docklands. Take a downstream cruise and you can follow the trail of the early pioneers down to Melbourne’s port and Docklands area. Melbourne is the Southern Hemisphere's busiest general cargo port. You can also take a ferry service to Williamstown, a historic maritime village with scenic bay views and a vibrant restaurant and café area.

An upriver cruise takes you to historic Herring Island and passes some of Melbourne's most famous landmarks including the Royal Botanic Gardens, Melbourne Cricket Ground, Melbourne Sports & Entertainment Centre, and Olympic Park. This is a very green and peaceful route that unlocks the true charm of Melbourne.

The River Yarra is one facet of enchanting Melbourne. Another is the range of Melbourne City hotels you can choose from. Two of the finest are the Atlantis Hotel Melbourne and Victoria Hall Accommodation Melbourne.

Richard Greaves has over 20 years experience in the travel industry and writes for Cheaper than Hotels. Cheaper Than Hotels offers Melbourne City hotels as Atlantis Hotel Melbourne and Victoria Hall Accommodation Melbourne http://www.cheaperthanhotels.com.au/Australia/Melbourne/City/Victoria-Hall-Accommodation-Melbourne/.