Urupukapuka Island is the largest island in the Bay of Islands of New Zealand, located about 7.3 km from Paihia. There are many sandy beaches. The waters around the island are clear and diving is particularly good on the east coast where there is plentiful reef life. Indico and Paradise Bays are popular sheltered anchorages and ideal for most forms of water sports. The bays are also inhabited by a colony of shags, and pohutukawas are abundant along the coastline.