Morro Bay State Park is a couple of miles away from Morro Bay itself.
It is a well developed park and used a lot by residents. Most of the park lies away from the coast, but there is a marina where you can hire canoes and kyaks.
This photo is of my husband and son enjoying canoeing in the early evening. My feet along with the rest of me stayed firmly on the shore!
There is also a campground at the southern end of the park which is surrounded by eucalyptus and cypress trees