I wont lie to you,Sydney does have an underbelly!
Kings Cross is the only suburb in Sydney that nearly everyone has visited and that everyone has an opinion on. It has worked as its own best publicist and its own worst enemy, with as many tales of bohemian freedom as there are of back street deals and random violence. Its place on the ridge overlooking the city has always set it apart from the rest of town, an 'exclusive' address from the start. It has often led Sydney in coming trends, from coffee shops and delicatessens to apartment living.

Situated 1.5km east of the city, it is easily reached by public transport, buses and trains run regularly from the city and Circular Quay. Although its a crime related area "mostly" it is safe to visit at night. Its just a matter of shifting through the sleaze on offer.

The "Cross" refers to the major intersection formed by William Street and Darlinghurst Street, which also displays Sydney's famous icon the flashing Coke- a Cola neon sign.
You will also find a large supply of backpacker hostels and budget accommodation mostly in this area. It attracts a fascinating diversity of people from budget travelers, colourful characters, tourists, bohemians, businessmen, artists, writers, sailors, and trendy locals.
Kings Cross is a fun place if you ignore the sleazy underworld and really is a must do to see, even if only for a look at how the "other half" live and play or for a quick nightcap at one of Sydney's best nightclubs.
My own suggestion and warning is don't walk down lonely dark alleys or lanes alone, stay in a group, ignore those whom pester and persist, watch your drink at all times as spiking can occur in this area, and make sure you are prepared to wait for a taxi.
But like Soi Cowboy in Bangkok or Bourbon Street in New Orleans sometimes you have to take a "Walk on the Wild side"
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