The hinterland behind Byron Bay rises into the caldera of an ancient shield volcano and contains some of the most distinctive towns and landscapes in New South Wales. All are within an hour's drive of Byron.
Mullumbimby (28 kilometres northwest) sometimes carries the unofficial title of most alternative town in Australia, which is saying something in this part of the world. The weekly farmers' market is excellent, there are good cafes, and the surrounding valleys are full of small organic farms and arts studios. It is a good base for exploring the caldera.
Bangalow (18 kilometres south) is the prettiest of the hinterland towns — a heritage-listed main street with cafes, antique shops, and galleries, sitting in a green valley with good views of the escarpment. The Saturday market on the showground is one of the best in the region.
Nimbin (65 kilometres west) is Australia's most famous counterculture village, a relic of the 1973 Aquarius Festival that turned it into a commune. It is self-consciously eccentric, openly pro-cannabis, and well worth a visit if you're curious about Australian alternative culture. The Rainbow Café and the Hemp Embassy are the landmarks.
Nightcap National Park (70 kilometres west) protects a large section of the ancient volcanic caldera rim, with some of the tallest rainforest trees in New South Wales and several waterfalls. Minyon Falls, dropping 100 metres into a gorge, is the standout. The park is accessible from Lismore via Dunoon or from Mullumbimby via Mullumbimby Creek Road.