South of Puerto Escondido, Mexico 1 hugs the Gulf Coast for about 20 kilometers more and then veers west across the peninsula toward Ciudad Insurgentes before turning south again to Ciudad Constitución.

Ensenada Blanca

About 40 kilometers south of Loreto, near the fishing village of Ligüi, Ensenada Blanca consists of a string of white-sand beaches, dunes, and estuaries that are now under development by the Villa Group. At press time, a crew of 400 builders were rushing to complete the first phase of construction so the Villa del Palmar Loreto (Km. 83, Carr. Transp., Ensenada Blanca, toll-free U.S. tel. 877/845-5247, www.villadelpalmarloreto.com) could open its doors in March 2011.

Finished plans call for 2,200 rooms on its 728-hectare property. Part hotel, part timeshare, the resort was planning to open several restaurants, an activity center, kids’ club, spa/gym, tennis courts, golf course, and swimming pool in the shape of a giant turtle. Studios have kitchenettes with stainless steel appliances; one-bedroom units have full kitchens. Every suite has a private balcony. Introductory rates start at US$150 per night, but prices are sure to climb as the resort operation gets into full swing.

Agua Verde

Between Km. 64 and 63, where the highway turns west toward Ciudad Constitución, a narrow and winding gravel road heads southeast for 41 kilometers to the fish camp of Agua Verde and a series of remote bays that make a good starting point for overnight kayak trips. The route traverses steep terrain with drop-offs of several hundred meters, frequent washouts, and no guardrails; as such, it is not suitable for trailers and RVs.

Along the way, Rancho El Carricalito (no tel.) offers basic accommodations and meals, and tortillas and goat cheese for sale. You can camp along the rocky shore here for about US$5 or continue on to the end of the road at Puerto Agua Verde, where the local ejido charges a few dollars a day to camp. Some supplies may be available at the tienda in the village of Agua Verde.

Ciudad Insurgentes

This community of about 10,000 people has fuel, supplies, and food. Although it is not a destination itself, Ciudad Insurgentes is a point of departure for excursions to La Purísima (102 km), Comondú (101 km), and Puerto Lopez Mateos (17.7 km). Drivers should note that the kilometer markers finish their countdown from Santa Rosalía here and start over at Km. 236.