Oceano is located a few miles from Pismo Beach on CA highway 1 (PCH). One of the most popular things to do in the area seemed to be riding ATVs at Oceano Dunes. We also enjoyed catching a show at The Great American Melodrama. If you are traveling by RV or trailer there are multiple resorts to stay at in the area, but we really liked Pismo Sands in Oceano.
Arroyo Grande is located off CA 101 and is the location for the walmart, In & out, Trader Joes and other stores. We didn't do much in the village of Arroyo Grande, but we really enjoyed all you can eat pizza night at Klondike Pizza.
Avila Beach is located north of Pismo Beach. 1.5 miles outside of Avila is Port San Luis. You can drive on the wooden pier if you'd like. We chose to walk out and sit to watch the seals and sea lions. There are so many, but don't get too excited and drop your phone in the ocean like one tourist did when we were there. The mineral baths at Avila hot springs are supposedly awesome as well. My husband and I are both very allergic to sulfa so we decided not to risk it.
San Luis Obispo (SLO) is the college town in the area as it's the home of Cal Poly. Our favorite thing to do in SLO was the Thursday Night Farmers Market. It's a farmers market and a festival all tied into one. There is local music entertainment, yummy food options, and great deals on produce. Don't forget to buy some delicious Santa Maria strawberries. Parking can be a nightmare so be prepared to fight or park far and walk.
Sunset off of the Pismo Beach Pier