Read the original article published by International Living here.

Steve Hartwig lives on an island that’s approximately three miles long. He leads a quiet life, running a small Bed-and-Breakfast. He’ll tell you there isn’t much to do—that is, outside of contemplating the bright blue water and the many species of rare and colorful birds. And that’s just fine with him.

On a quiet day, Steve may send his guests on a tour…after making them a tropical island breakfast. He’ll then take a 10-minute boat ride to the “main island.” He’ll do some shopping and then head to a pub on the water. The waves wash up on the shore and the cool breeze rustles through the deep green jungle growth and spindly palms.

Locals call out to Steve, some waving from the bar and some shuffling over to give him a peck on the cheek or pat on the back (the local “hello”). He is content with this acceptance and affection from his new friends. “The locals are probably my favorite part of life here,” he says. He speaks little Spanish, but gets along just fine with his own brand of sign language and a limited Spanish vocabulary.

The tiny island where Steve lives is Isla Solarte, one of over a hundred that form the Bocas del Toro archipelago. The “main island” is Isla Colon, the site of the provincial capital. The part-mainland, part-island province of Bocas del Toro is on Panama’s Caribbean coast—some 300 miles northwest of Panama City.

Best known for its islands, Bocas is Panama’s most beautiful province. The crystalline waters rival those of the Bahamas (without all the violent crime and sprawling hotel compounds). From the perfect sands of Zapatilla Island to the starfish-strewn Boca del Drago, this area boasts a jaw-dropping amount of pristine beaches.

Bocas also boasts a unique cultural diversity. Indigenous tribes govern reserve lands here, while the people of Bocas town are mostly of African or Afro-Caribbean descent. Today many locals speak an English-Spanish patois (though many speak standard English, too).

Right now, due to the global economy, travel to Bocas is down and the small, tourism-based economy has been affected. Some of the smaller hotels are hurting, as are some upscale restaurants that are geared toward tourists, but too expensive for most locals. Perhaps because of this, property prices have started to come down.

You can get a two-bedroom house on the water for around $200,000. Something special—made from solid hardwood, a big 2,700-square-foot house on an acre lot with ocean views—would cost closer to $500,000.

These clear turquoise waters with patches of sapphire seem to belong in the Caribbean.

I’m standing on a steep hill overlooking a white-sand beach. I’ve just walked past the “airport”—little more than a landing strip—to the mini-mart on the “main road.” I’ve passed no cars, just a few golf carts whose drivers smiled or nodded or said hola. Aside from that and the rolling sound of the waves, it’s quiet.

I don’t have a hat and sunscreen, and set out to walk the entire island; a feat that takes two hours…at a leisurely pace. I come across workers at construction sites; they do not catcall or bother me in any way. The island population is notoriously polite.

Sweet, flower-framed cottages sit next to mansions—the weekend homes of Panama’s most influential families. Here on the island they are accessible…not cloistered behind the inky windows of an air-conditioned Mercedes. The local elite aren’t the only high-profile people to be drawn here. Famous visitors range from the exiled Shah of Iran to John Wayne.

One of many islands in the luminescent string that is the Pearl Archipelago, Contadora is just off Panama’s Pacific Coast, a mere 40 miles from Panama City. The tidy island town boasts three “mini-supers,” a miniscule social security clinic, an equally teeny police station, and one gas pump. There are a few hotels and B&Bs, and a handful of restaurants boast fresh seafood and even European cuisine.

Residents travel to Panama City regularly to visit large grocery stores, theaters, malls, hospitals, and more. There are no banks or ATMs on the island, so bring cash (though many of the hotels do accept credit card). Despite the lack of city trappings (or perhaps because of it) there is a small but thriving expat population here. These few have discovered that Contadora’s waters rival those of the Caribbean.

Expat Ken Grabenhofer bought property in Contadora five years ago. He built a three-bedroom, three-bathroom home that he rents out to visitors. Next door, he built a smaller apartment, where he lives for much of the year, returning to Illinois when he can. The home is close to the water and features a small but pleasant pool.

“I came here and was pretty much hooked,” he says. Though building a home on a small island can be challenging—especially when it comes to sourcing and transporting materials—Ken says it was all worth it. “The hard work can really pay off,” he says. “I have rented the house for $500 a night during the high season. For New Years I had an upper crust group of Panamanian youths who liked the house so much, they were happy to pay $600 a night.”

Ken recently purchased a lot in front of his home, where he has begun building three small cottages. Though the year has been a bit slow in terms of tourism and rentals, he is confident it will pick up. And with so many foreigners discovering and visiting Contadora, there are plenty of niches to fill for anyone thinking of starting a business here. The island could use an Internet café, an ice-cream shop, a small wine bar…and the list goes on.

But don’t get me wrong; there is plenty to do here. You can rent a golf cart or walk to one of Contadora’s 11 beaches (including Panama’s only nude beach). Take in the birds and the Technicolor flowers, play golf on the rustic nine-hole course, or hire a local panga or fishing boat for a tour. The surrounding islands offer plenty of opportunities for adventure. Spend the day fishing, go snorkeling or diving, rent jet skies, charter a catamaran, go whale or dolphin watching, or pretend-play Robinson Crusoe on a truly private island.

I have traveled a great deal in Panama—and this fishing town still strikes me as the nation’s most alluring. Walking toward the square, I am charmed all over again by the tiny colonial homes that line the main strip.

Directly across the street is a house selling Panamanian arts and crafts. I can see clay pots tinged with burnt orange and yellow precisely the shade of French’s mustard. A white woven hammock sways lazily in the light breeze, and the few people on the street seem to be in no hurry. There are no power-walkers this morning, no suit-and-ties rushing to work.

This is not a destination for rushing…or for shopping or theater-going. If you need an active night life to keep you happy, Pedasi may not be for you. But if you’re looking to retire, relocate, or just buy a second home in “the real Panama,” this little beach town may be the answer.

Pedasi is known as the “tuna coast,” and it has been a destination for sport fishermen for years (the town even hosts an annual fishing tournament). Here the coastal shelf drops off suddenly to provide deep water fishing a short distance from shore. Yellow fin tuna, sailfish, wahoo, and dorado are among the regular catches. Expat Linda Mckee says: “In Pedasi, I am in seafood heaven…clams, conch, lobster, and oysters are available daily.”

Within an hour’s drive there are 11 different beaches, all clean and easily accessible. The sands vary from deep bronze to the sparkling volcanic black. The roads to Pedasi are first-class and the sleepy village is probably one of the best maintained towns in Panama. New businesses are springing up to offer fishing, snorkeling, and diving trips. There are unlimited opportunities for small businesses and niches to be filled. The town could use more restaurants, a fish market, a deli or bakery, a bookstore, or a high-end internet café.

Local businesses are intent on making it easier for everyone to get to know Pedasi. Expat entrepreneur Casey Halloran, who owns B&B Casita Margarita, is the area’s most vocal supporter. After many months of lobbying, he convinced local airline Aeroperlas to offer flights to Pedasi. Now instead of driving four hours from Panama City, you can fly here in under an hour.

Pedasi has long been a secret (though local developers say celebrities like Mel Gibson began to invest here long ago). Ask Panamanians for beach recommendations and they’ll name Coronado, Bocas del Toro, and San Blas…but hardly ever Pedasi. Five years ago, Pedasi was hardly frequented by expats. But with new hotels, restaurants, and now flights to the area, growth seems to be accelerating and the expat community is growing. Now is the time to visit…

I’ll talk about Pedasi (and show photos) at International Living’s Live and Invest in Panama Seminar in April.