The town is centred around Jalan Raya Candida, where a number of hotels, restaurants, and shops line the main road.

It is popular tourist stop, attracting divers and those looking for a more sedate alternative to the busy, nightclub filled Kuta area or the large, manicured resorts at Nusa Dua.

[1] Most sources say a fishing village was founded on the site by the 12th century and before the modern name of Candi Dasa was adopted it was known as both Teluk Kehen ("Bay of Fire")[2] and Cilidasa.

The diving and snorkeling in the area brought many tourists and the village began to grow; hotels, villas and restaurants popped up along the main strip.

Tourism picked up again in more recent years as per the general trend on the island, bringing atms, health clinics and mini marts.

During the 90's local hotel owners constructed a series of t-shaped groins jutting out into the water in an attempt to preserve the beach, with mixed results.

In 2015-2016, a study suggested that the existing seawalls, groins and revetments be removed because of their deterioration, their material to be reused for new structures where possible.

[5] Early 2017 four large floating platforms from concrete were placed in Candidasa's bay, possibly as an ill-advised attempt at reducing the pounding of the waves on the shore.