Matsue is the capital city of Shimane Prefecture, Japan. It is also known as the “City of Water” because it is right by the sea, Lake Shinji, Lake Nakaumi, and there are many canals across town. One of the best ways to explore the Matsue old town is to take a sightseeing cruise that passes through the inner and outer moats of Matsue Castle, a National Treasure of Japan. Then take a walk to the Matsue Castle, visit historical buildings and museums.