Welcome to Puerto Díaz
Its possible to arrange boat trips with local fisherman (per day US$50, six to seven passengers) to the archipelago in front of town, where you can visit each of the three rocky islands with their array of bird life and swimming beaches. There’s a house on Isla Redonda where you may be able to sling your hammock for the night, but you’ll need to bring food and water with you from the mainland. Isla Grande is home to a tiny farming community and Isla El Muerte is owned by an absent foreigner, but the guard will probably let you poke around.
In a breezy ranch by the water, El Pescadito serves a terrific fried fish (so fresh the meat really does fall off the bones) with panoramic lake views. Bar y Restaurant Lizayel, right across the road, has a similar menu but less ambience. It also organizes boat trips to the islands.
For a refreshing swim, head up to the cement pools and thatched bar of Mirador Vista Linda, on the hill just above town. Even if you don't plan to jump in, its worth walking up here for the view, which is magnificent. It takes in the three islands and a stunning back view of Isla de Ometepe’s smoldering crater. Order a cold beer and let the view work on you a while.