Tidy, prosperous La Paz may be the capital of the state of Baja California Sur and home to about 220,000 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 "peace," and how its residents can be called Paceños (peaceful ones).
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. (Only small ships can berth at La Paz itself; most cruise liners dock at its port of Pichilingue, about 16 km [10 miles] north of town.)
La Paz officially became the state capital in 1974, and is its largest settlement (though the combined Los Cabos agglomeration is quickly catching up). All bureaucracy holds court here, and it’s the site of the ferry port to Mazatlán and Topolobampo, the port of Los Mochis, on the mainland. There are few chain hotels or restaurants, but that's sure to change as resort developments come to fruition around the area.
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. Economic doldrums of recent years put brakes on those projects, but as Mexico’s tourism finally, slowly, cautiously begins to rebound, plans have moved to the front burner again.