The Škofja Loka Hills to the west, a region of steep slopes, deep valleys and ravines, is an excellent area for walks or hikes, and there are several huts with accommodation in the area. If you're serious about exploring, buy a copy of the map and guide for cyclists, hikers and drivers entitled Škofjeloško, Idrijsko in Cerkljansko Hribovje (Škofja Loka, Idrija and Cerkno Hills; €12 from the TIC).
One of the easiest trips is to Lubnik, a 1025m peak northwest of the Old Town, which can be reached on foot in two hours via Vincarje (a difficult route), or via the castle ruins near Gabrovo. A shorter option (40 minutes) is from the village of Breznica. A mountain hut near the summit, Dom na Lubniku, has four rooms (12 beds) plus a restaurant and a terrace with great views.
A hike to 1562m Blegoš, further west, would be more demanding, but it takes only about three hours from Javorje, a village accessible by bus from Škofja Loka. With your own wheels, drive to the village of Črni Kal and you can reach it within an hour. There is an excellent mountain hut in the area: Koča na Blegošu, at 1391m, with 61 beds (in rooms and dorms), restaurants and good family facilities.
In the summer heat, join the locals at the town's fabulous riverside swimming area. It's in Puštal, about a 10-minute walk southeast of the Old Town (signposted from Fužinska ulica). There's a summertime cafe-bar here, as well as the wooden 'Devil's Footbridge'.
Ask the TIC for the pamphlet Walk around the Town and Surroundings.
Most practical facilities for visitors are located a short walk from the bus station on Kapucinski trg. These include banks and the post office. There's a supermarket and ATM on Mestni trg.