Environmental, arty places to live around Lake Macquarie/Newcastle

Hi there, we live in a terrace in the inner west of Sydney but are tiring of the roads to nowhere, the endless development etc. We rather like Newcastle especially the beach and The Hill! And also the politics, frankly. A solid Labor town. Love the arts scene, the can do attitude. But I crave birds and trees too. A favourite holiday spot is Smiths Lake - it's hilly, with homes that value their trees, lots of birds, and then the gorgeous lake. So far from town though. So we're considering Lake Macquarie. Hoping to find a nicely tree'd, environmentally concerned village, preferably with a few artist types, musicians, writers, painters... Dream on huh? What's the Wangi community like in this regard I wonder? other lakeside hamlets? Thanks in advance.
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Rentals in Newcastle, NSW 2300