Toronto Harbour is both a commercial port and a recreation area. Commercial activities are confined mainly to the harbour's eastern side, while the western side was developed into Harbourfront, a conversion from industrial land to recreational and cultural uses. Harbourfront has parks, hotels, an amphitheatre, and many other facilities. The Toronto Islands are also mostly recreational, although they do also contain a small community and an airport.

Toronto also has a second harbour, called the Outer Harbour (Toronto Harbour is sometimes called the Inner Harbour), but it never developed into a commercially viable project. It was created in the 1950s by the Toronto Harbour Commission through the construction of a new breakwater called the Outer Harbour East Headland. At that time, it was expected that there would be a great upswing in the number of ships calling at Toronto once the Saint Lawrence Seaway opened. However, the need for an extra harbour never materialized, and private boats are the only traffic usually found there now.

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