Denpasar is the capital of Bali and is located 7km NE of Kuta. Denpasar is huge and has the most unwieldy one-way traffic system on the island. I do not go to Denpasar unless I have a good reason, but this city does have its special places.
In Covarrubiass day (mid 1930s) Denpasar was the place tourists would head to after arriving by ship at Singaraja on the north coast. Covarrubias comments that the same touts and ladies of the night that one might find in Kuta nowadays, had already staked out their turf outside the few tourist hotels. Today Denpasar is a thriving city and is not dependent on the tourist scene. In fact it does not cater to tourists all except for maybe the Bali Museum, located at Puputan Square in central Denpasar.
Denpasar was called Badung before 1949 and became a self-governing municipality. The word pasar means market and the name Denpasar originally meant, next to the market. To get to Denpasar from Kuta take Jl. Imam Bonjol north and you will come to Denpasar city limits very quickly. There is an assortment of street side restaurants along Jl. Teuku Umar, which branches off of Jl. Imam Bonjol.
One good thing is that prices are cheaper here. Ask a Balinese local where they got a good deal on their motorbike, helmet, sarong, t-shirt, cell-phone etc. and they will say Denpasar.
If you want to explore Denpasar take a taxi or hire a driver.
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