Williams sits at the edge of the Kaibab National Forest, a vast ponderosa pine forest that stretches north to the Grand Canyon's South Rim. The forest around the town has good hiking and mountain biking on a network of trails, including the historic Bill Williams Mountain trail, which climbs through pine and aspen to panoramic views over the plateau and, on clear days, to the San Francisco Peaks near Flagstaff.
In winter, the forest is popular with snowshoers and cross-country skiers. The Elk Ridge area south of Williams occasionally has skiable snow after major storms. Cataract Lake, just west of town, offers fishing for stocked trout and a pleasant lakeside walk.