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Best Viewed in Large Format (click photo, choose size). The Magnolia neighborhood is essentially a hilly, short peninsula just to the north of the Elliott Bay waterfront. It is surrounded on three sides by water: Elliot Bay to the south, Puget Sound to the west, and the Lake Washington Ship Canal and Salmon Bay to the North. Discovery Park is a huge and beautiful natural area on Magnolia's crest and down its western slope to the beach and is very popular for hiking and outdoor activities. This shot of Magnolia's eastern slope was taken standing on the west slope of Queen Anne Hill. Beyond Magnolia's ridge you can see the snow capped Olympics which lie beyond the Sound. Seattle Magnolia Seattle+neighborhoods Discovery+Park Elliott+BayPuget+Sound Lake+Washington+Ship+Canal Salmon+Bay Olympic+MountainsOlympic+Range Queen+Anne+Hill Queen+Anne Seattle+peninsula black+and+whiteurban+scene city+vista hill+view