Candidasa is a small resort strung out for approx 2 km. along the main road to Amlapura from Denpasar. It is well worth using this town as a base for exploring the Eastern part of Bali, as well as local attractions. We found it laid-back, very friendly and very peaceful - ideal for time away from it all, but with good amenities thrown in.
There is a good selection of restaurants in the town: notable are Vincent's, Kubu Bali, Candi Agung and the Candi Bakery and Bistro. The latter sells excellent bread and pastries. All serve good Indonesian and Western food. Seafood is good in Candidasa. There are small supermarkets for basics (Amlapura for more extensive range in Hardy's by the market there) among the eateries.
Candidasa is a good jumping off place for the beaches running East from Amed (very good snorkelling and diving) and small offshore islands for the same, with enough variety of restarants on the strip and local interest in and around to justify a week's stay . SubOcean Dive at the far Western end of the town, next to Rama Beach Resort, is Dutch-run and does PADI courses and arranges dive expeditions. Also near is Tulamben (excellent snorkelling on the Liberty wreck, diving too). The region has beautiful rice terraces (near Tirta Gangga), views of Gunung Agung and relatively unspoilt rural peace on the coast road through Ujung (near Amlapura) around the far Eastern headland, with views of Lombok and the volcanoes.
See also water gardens at Tirta Gagga and the pleasant town of Amplapura (ATM here in Amplapura - not in Candidasa, although there are money changers there)
There are local buses and bemohs, and also car/driver hire places. I'd recommend Candidasa Transport (tel: [--]). Antara, who works for them, is an excellent driver and has a detailed knowledge of the local area. [Rp 300,000 for a day's hire.] They also do airport drop-off for Rp 250,000.
Recommended half-day trip is to go to KlungKlung (Semalapura) to see the palaces, then to Sidemen (eat at Enak's Warung - lovely little place serving good food with a pleasant view). On the way, there are beautiful views and intersting villages. Then head back to Amlapura on the inland road. Again fine views, local life and less traffic.
We stayed at a very comfortable bungalow during our time in Candidasa, next to SubOcean Dive. We had full run of the pool (except when diving lessons on) and a beautiful uninterrupted view of the sea. Go to [--] for full details.