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Whatever you are interested in, there is a walk for you in or around Chapel Hill. For nature types, take a moderate level hike through Wilson park (locals can give you directions, but the foot path starts just off Greensboro Road). If the weather is nice, there are several places along the way to take a break or bring a picnic. Wilson Park is great for dogs, too. Or take a walk along the Southern Village Greenway just south of town and stop off at the Market Street area for some lunch or some ice cream. Or even a movie!
For a less strenuous taste of nature, make sure to visit the beautiful University of North Carolina botanical gardens, . You can either stroll the gardens themselves (no admission charge) or walk on a number of paths which take you into the the woods, either up the hill or along the watershed of Morgan Creek. That trail run for quite a few miles. You can access the Bolin Creek Trail, largely paved, fairly level, and suitable for bicycles, either at the Community Park at Estes Road, or from the Midtown Market Shopping Center. Many locals start at the park, go to the other end, have breakfast or lunch at Foster's Market, and then walk back again. If you are starting from Estes, you can look for a sign pointing left, to a trail which will take you up through the woods to the Caffe Driade.
For people watching, nothing beats a stroll down Franklin Street, which promises to be packed with tourists, students, professors, and locals catching a movie, a beer, a bite, some music, or some ice cream. Keep going west and reach Carrboro, which is a great day-walk in itself and will give you even more of a local feel. Anyone on the street in Carrboro can also tell you how to get to the bike path, which is a great walk, too, and will bring you straight back into Chapel Hill.