Rising up the slopes, overlooking the town is Pelham Reserve. This Shire-managed Reserve covers over 50 hectares of bushland adjoining the southern part of the town area. It allows easily accessible opportunities to traverse some 6 kilometres of signposted walk tracks.

The Reserve is steep and hilly and provides many scenic viewpoints over the town and along the Avon Valley. The majority of this reserve is York Gum and Jam Woodland with Wandoo Woodland in the southern corner.

At the main lookout are parking areas, picnic and toilet facilities and the James Drummond Memorial.

In spring the slopes of Pelham Reserve are carpeted in pink Everlasting flowers.

Pelham Reserve also contains many World War II features of interest and the dam and spillway associated with Toodyay’s original water supply.