Punta del Este is just a couple of hours by bus to the east of Montevideo. Its name means Eastern Point and hints to the main characteristic of the town, which is built on a short peninsula placed at the exact point of the meeting between the Rio de la Plata (Plate River) and the Atlantic Ocean. The result is the most thrilling beach resort in the southern cone of the subcontinent: rich Brazilians and Argentineans completely crowd the town during the summer season. Its unusual geography leads to a striking characteristic: the southern side of the peninsula has a beach called Playa Mansa, with hot and sweet water, while its northern side has a cold and salty water beach called Playa Brava. Walking along the promenade (Rambla General Artigas), you can choose your splashing style: hot river water is the best for a chilly morning, while the cold water from the ocean will cool you down in a hot afternoon.
You can get a map loaded with local information at the tourist office located at the west end of Inzaurraga Street. Many souvenirs are available at the Feria Artesanal, which is active every evening on Plaza Artigas. The main commercial street is Avenida Juan Gorlero, which hosts many pizzerias and cafes that offer the best economical meals in town.
From the yacht harbor you can take a boat every half-hour to Isla Gorriti, which has sandy beaches, and, with a special appointment, to Isla de Lobos, home to many fur seals. Since this is an exclusive location, a backpacker on tight budget must plan its way carefully. There are no cheap accommodations in the town, but you can overcome the problem in a couple of ways. The simplest one is returning to Montevideo at the end of the day; in such a way, you can leave your luggage and travel light.
The other option is more interesting if you are heading for Brazil: you can take a bus from Punta del Este to the town of Rocha, farther east, and from there you can take a local bus to La Paloma, 28km southeast, by the Atlantic Ocean. La Paloma is a tiny Punta del Este for locals searching for beaches facing the ocean but unattracted to the overwhelming crowds of its big sister. Backpackers will feel at home in their inexpensive guesthouses. Rocha offers good value guesthouses as well, and from there you can follow to Chuy, the border cross to Brazil.