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This is a fun event that really gives you a taste of what local festivals are all about. Taking place on the first Friday and Saturday in August, six big floats 15 m high, 9 m long, and weighing in at 2 tons are carried by 100 men and marched in procession around the alleyways of the small fishing village to the tune of tradtitional flutes and drums. Everyone is there to have a good time and cheer on the people carrying the beautifully decorated—and massive, floats. There are food stalls scattered around the main square and plenty of drinking.
石川県能登島ガラス美術館
This museum is the only public specialized glass art museum in Japan. It displays some unique glass sculptures based on original ideas from artists such as Picasso and Chagall. It also has some interesting sculptures and a section devoted to old liquor bottles once used in Japan. If that wasn't quirky enough, the building looks like a ship straight out of Star Wars.
石川県七尾美術館
Nanao was the birthplace of Tohaku Hasegawa (長谷川等伯), who was a well known Japanese master painter. They have annual exhibitions related to his works. You can also see many local artists' works there. Worth checking out if you have some free time.
七尾城山
Contrary to the name, this area contains very little in the way of castle ruins, offering just a small section of stone wall that was once used to fortify the small castle. The reason to go is not for the (non-existent) castle, but for the best view of Nanao and its bay. The small park at the top is peaceful, and the view is gorgeous. The best time to go is in spring on a clear day.