The Blue Mountains is an area about 1.5 hours west of Sydney. It's made up of 10 or 15 smaller connecting towns. It is officially known as The City of the Blue Mountains though tourists have been known to ask "could you tell me how to get to the city" when they're standing in the middle of it.
We (wife and 1 year old daughter) moved here in 1996. Our intention was to renovate an 85 year old house, make some money and go back to Sydney. 12 years and a son later the house is almost done but we're not going anywhere.