Little Traverse Bay and Petoskey stones
Little Traverse Bay anchors Petoskey and Harbor Springs, with premium shoreline and classic Petoskey-stone hunting.
Little Traverse Bay is the centerpiece of this corner of Michigan — a deep, clear arm of Lake Michigan. Petoskey sits on its south shore and Harbor Springs on its north, with miles of beach, bluff, and resort country in between. Boaters love it — it’s said to be the deepest natural harbor on Lake Michigan. A paved trail, the Little Traverse Wheelway, runs right along the water and connects the towns. Sunsets over the bay are famous enough that an old newspaper line about a “million dollar sunset” is still a local slogan.
The bay is also the best place in the state to hunt for Petoskey stones — Michigan’s official state stone. They’re not really stones at all. They’re fossilized coral from an ancient sea, with a honeycomb pattern that pops when the rock is wet. The stone and the city share a name. It comes from Pet-O-Sega, a respected 1800s Odawa landowner whose name means “rays of the rising sun”. Petoskey State Park, between the two cities, is a favorite hunting ground. People comb the public beaches after every storm.
For buyers, anything on or near Little Traverse Bay is premium property. Frontage is scarce and expensive, and even a water view carries a premium. As always with waterfront, check exactly where your lot meets the water and whether access is private or shared. Look at the condition of any older septic system, too — the whole area works hard to keep the bay clean.
Sources
Last reviewed against the listed sources: June 4, 2026.