If you are planning to visit Penang Hill or Kek Lok Si Temple outside of George Town, you will pass through the area known as Ayer Itam which is very near to both of these popular attractions.
Sprawling along Jalan Basar Road within separate covered market buildings is the Ayer Itam Market, which seems to cover several blocks worth of buildings. If taking a public bus to the area, just look for the large brown roadside sign 'Pasar Awam Ayer Itam'.
We enjoyed walking around parts of the Ayer Itam market, looking over the fruits, vegetables, sundries and other goods being sold in the open stalls. It is a photogenic market with what seemed like good quality produce, worthy of purchase for those staying in Penang for longer accommodations with kitchens or cooking facilities.
Tip: For those planning on planning on sightseeing in the area, we'd suggest going to Penang Hill first, arriving early so you can avoid the queue at the railway tram going up the hill. Visit as long as you like. Then return and take one of the buses which stops in Ayer Itam (5-6 minutes by bus).
Exit the bus, walk around the market for 20-30 minutes before walking up to Kek Lok Si Temple, 300 metres away (at least according to the sign). This is a nice way to enjoy this very busy and colourful public market in Penang in between your primary sightseeing efforts on the day.