The trip came after the Queen was officially received by Governor-General Quentin Bryce at Government House
She wore a lavender floral print dress designed by London couturier Stewart Parvin for the meeting, while Ms Bryce wore a simple black skirt with a black lace top.
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Crowds lined the foreshores on both sides of Lake Burley Griffin, hoping to catch a glimpse of the monarch as the vessel heads to the wharf at Commonwealth Park.
There were hundreds - mostly mothers and their young children - on the southern side of the lake in front of the National Library.
Clutching a big umbrella to shield themselves from the gloriously bright sun, Sunshine Coast couple John and Sandra Gough were waiting near Regatta Point, where the Queen will disembark before strolling through Floriade.
Mr Gough, who came to Australia from Britain more than 40 years ago, said he met the Queen in his native country during the 1950s, when she was Princess Elizabeth.
"Schools in the area had the day off," he said.
"I shook hands with the (then) Queen mother, (princess) Margaret and Elizabeth.
"It was great. I've remembered it for a long time."
His wife Sandra said she was very excited about being in the presence of the Queen.
"I'd love to meet her," she said.
Ruth Carter, from Lennox Head on the far north coast, was wearing a cap decked out with Australian flags.
"I think the Queen gives us stability,"she said.
"She never puts a foot wrong.
"If we had more women like her, we'd be a great country."
