6 terrific towns on the water

Many baby boomers dream of retiring somewhere by the water. These half-dozen places are on a lake, a river or an ocean - yet they won't sink your retirement budget.

If you tire of Lake Marble Falls, there are six other lakes nearby.

• Ultimate retirement guide
• What's your dream retirement?

Until recently, this little town in the hill country 47 miles northwest of Austin was a well-kept secret. But word has leaked out of the Lone Star State that this area isn't just a refuge from high home prices. With its gently rolling terrain, stately trees, colorful wildflowers and - increasingly - vineyards and fine cuisine, it's a little piece of Provence in the big ole state of Texas.

It's also smack dab in the middle of a chain of seven large lakes on the Colorado River. The town of Marble Falls boasts one of them: Lake Marble Falls, created by a 1951 dam that submerged the falls for which the place was named. For now, at least, Marble Falls remains a hospitable little place with a whole lot of comfort food, country music and cowboy character.

Home prices, which average about $250,000 near the water, are affordable by most standards. Taxes are tolerable (though property taxes are high, the state leaves your income alone), and a new regional medical center is slated to open in the next few years. And when the thermometer hits 100? Just make tracks for the lake.

Send feedback to Money Magazine

More galleries