On the Chesapeake and Delaware Canal in Chesapeake City, the Chesapeake Inn sits at one of the most dramatic waterfront locations on the whole Bay: massive commercial ships pass within shouting distance as they transit the C&D Canal, and watching them from the deck with a cold drink is one of the great free spectacles of the Chesapeake. Full marina, excellent seafood, and a full bar program in a genuinely historic canal town that rewards the detour off Route 40.