The valley of the River Otter south of the town is one of the prettiest sections of the East Devon Area of Outstanding Natural Beauty. The river runs through water meadows and copses of oak and ash, with kingfishers on the river and otters (reintroduced to the Otter in the 1990s and now well established) visible in the early morning and late evening. The East Devon Way footpath follows the valley from Ottery south to the sea at Budleigh Salterton, a walk of about 10 miles.
For shorter walks, the path south from the town along the river to Tipton St John (about 2 miles) is an excellent afternoon walk through characteristic Devon farming country. The valley is at its best in May when the water meadows have cowslips and the hawthorn is in flower. The return to Ottery by bus from Tipton St John (or as part of a circular route back through the hills) makes a satisfying half-day outing.