On a hot summer day people take full advantage of the Sheep river. It is a great place to go swimming, sunning, fishing ( though I have yet to see a fish in the water), kayaking, and floating on tubes down the river. The water is too shallow for motor sports which makes it nice to not be bothered by yahoos with engines. The water is super clean and has small rapids and a currant so it makes it perfect for floating down the river. There really is no set area- people just seem to pull over where ever they can park and launch from there. Just be sure to use common sense. If there is lots of rain then the river is probably too high and too swift for floating. There will generally be a high river warning in the early spring and because the river runs down from the mountains there is the chance of tree debris in the water that can snag you.
If you happen to be driving through town and stop in for a cuppa joe then wander along the main drag and stop in at the BlueRock Gallery. It tries to maintain a 100 mile art "diet" featuring only local artists and artisans. It has lots of neat little things you can purchase- pottery, soap, necklaces, cards, and a fun selection of books from local authors and hiking guides. It also has a gallery next door to the store part where you can view some of the local talents paintings and other art.
Smack dab between Okotoks and Black Diamond lies a treasure. An erratic that is between 520-600 million years old! It was carried here on an ice glacier from Jasper park and dumped off at it's final resting place. This rock was here before the Rocky mountains were even formed. The area it lies in has been donated to the public so there is no entrance fee and it is so worth taking a look at.