There are a great many interesting geocaches hidden around here, in all parts of the 'great outdoors' that surrounds the string of charming mountain towns along the Great Western Highway. However, you will eventually have to stop sight-seeing and find something to eat if you visit here for any length of time. And Katoomba is one of the best places to choose from a variety of cafes and restaurants.
I might argue that my adopted home town of Leura has the very best cafes and shops, but Katoomba certainly possesses the greatest number of them. And there are some establishments along Katoomba's main street -- Katoomba Street -- that provide some pretty good coffee! The idea of this little cache is to give visitors something to do when they finish their bush walking and want to come back to civilisation. You can have a nice meal and a great cappuccino and then look for a cache or two not far away from your cafe!
This urban-style cache isn't hidden inside a coffee shop, nor is it located anywhere that will cause trouble to anyone else. In fact, you can pretend to be doing something quite ordinary while you carefully search for this one!
Your GPSr might not be entirely accurate in this kind of setting, but an experienced geocacher will immediately guess a likely hiding spot or two! (In any case, my latest hint pretty much indicates the exact location, so please don't whinge about 'poor coordinates.')