La Paz may be the capital of Baja Sur and home to about 200,000 residents, but it still feels like a small town in a time warp. This east-coast development could easily be the most traditional Mexican city in Baja Sur, the antithesis of the "gringolandia" developments to the south. Granted, there are plenty of foreigners in La Paz, particularly during snowbird season. But in the slowest part of the off-season, during the oppressive late-summer heat, you can easily see how La Paz aptly translates to "the peace," and how its residents can be called paceños (peaceful ones). The city sprawls inland from the curve of its malecón, promenade, along the Bahía La Paz, which, through some strange feat of geography, angles west toward the sunset.
Travelers use La Paz as both a destination in itself and a stopping-off point en route to Los Cabos. There's always excellent scuba diving and sportfishing in the Sea of Cortez. La Paz is the base for divers and fishermen headed for Cerralvo, La Partida, and the Espíritu Santo islands, where parrot fish, manta rays, neons, and angels blur the clear waters by the shore, and marlin, dorado, and yellowtail leap from the sea. Cruise ships are more and more often spotted sailing toward the bay as La Paz emerges as an attractive port.
La Paz officially became the capital of Baja California Sur in 1974, and is the state's largest settlement (though Los Cabos is quickly catching up). It's the site of the state's bureaucracy, jail, and power plant, as well as the ferry port to Mazatlán. There are few chain hotels or restaurants, but that's sure to change as resort developments come to fruition around the area.
The La Paz region, including parts of the coastline south of the city, is slated as the future building site of several large-scale, high-end resort developments with golf courses, marinas, and vacation homes.