Up until recently, the most common question asked of a new face in San Francisco, Nayarit (San Pancho to the locals) was not "where are you from?" but "how did you find out about San Pancho?" The petite beach town, situated only 25 miles north of tourist mecca Puerto Vallarta, offers a chance to escape the timeshare salesmen and mega-resorts without giving up too many of the comforts of home. Until only a couple of years ago when the travel press began to cover it, San Pancho was still relatively unknown.
Once a simple fishing community consisting of approximately four extended families, San Pancho was adopted by the then President of Mexico, Luis Echeverría, as a personal project to develop a self-sustaining city as a model to be emulated around the world. This is why you will find most of San Pancho's streets are named after countries and the main road is named Tercer Mundo, or Third World. Echeverría encouraged the families to bring in more people, and as rewards for their work towards helping him build his model city, they were given plots of land on which to live and work. In addition to the new homes that featured indoor plumbing and electricity (something new for the area), the community built three schools, a teaching hospital and planted massive orchards of fruit trees to help provide income to the growing town.
At the end of the President's term, he was forced to flee the country and thus abandon his project, leaving the town to sustain itself, which it did, slumbering peacefully until the mid-90s when it was discovered as a secret hideaway by visiting foreigners. Even up until recently San Pancho was a fiercely guarded secret, the "local" gabachos (Northerners) not wanting to draw big tourist crowds to their secret paradise.
Indeed, San Pancho is a little slice of heaven for as many as 1,500-1,800 residents, of which the majority are still related to the original San Pancho families. The quaint shops lining cobblestone streets, the petite zócalo (town square) and several miles of golden sand beaches give San Pancho the air of a traditional Mexican fishing village, however the introduction of about 200 foreign-born residents has added an international flair to the little hamlet.
With those foreign residents has come a French bakery, several International restaurants, community projects, including endangered sea turtle conservation and a library, and a small clutch of art galleries and boutiques. Perched on a hill, there¹s even a yoga studio that offers a variety of classes and workshops.
Where in the World is San Pancho?
From the international airport in Puerto Vallarta, head north on Highway 200 along the coast. Soon after leaving the beach town of Bucerías, you'll enter a verdant jungle that covers the hills. Keep your eyes peeled and you might see some of the local wildlife and tropical birds that make this area their home. A few miles after passing the turnoff for the surfer¹s haven Sayulita, you¹ll see a small sign noting San Francisco, Nayarit. Make a left turn and you're on Tercer Mundo, the main street.
If you follow this street straight to the end, you will end up at small boardwalk where the local venders set up their stands to sell handicrafts and jewelry to beachgoers. This is the main access to the several miles of beach that is most popular with beachcombers and surfers. At first glance, you may think that San Pancho isn't much more than the main drag lined with boutiques, taco stands and real estate offices, but it doesn¹t end here. By turning right two blocks before the street ends, you¹ll head north, following the coastline, past a large gated community and back into a hidden little neighborhood that hosts fine dining, several high-end shops and the area¹s only resort, Costa Azul.
What to Do
Unfortunately, the beach is steep and the surf can be quite rough, so San Pancho is not a good location for swimming. Waders, during the milder times, can enjoy frolicking in the surf, but surfers and boogie boarders will have the most fun in the giant waves. Experienced and strong swimmers only please!
Despite the lack of ocean swimming, there are several beach restaurants to lunch at while enjoying the sound of the waves, and during the day you will find families enjoying the sun and sand. After you¹ve had enough sun, head inland and take in an espresso, then browse the little shops and galleries that line Tercer Mundo. When the time comes to enjoy a stunning Pacific Ocean sunset, grab your drink and head back to the beach to watch the sky burst into color as the sun sinks below the horizon.
If you find San Pancho too tranquil for your tastes, you can always head to Puerto Vallarta for the day or visit Sayulita, the neighboring town that's a surfers' haven. You'll find a variety of tours, water activities and other outdoor recreation to while away the hours before heading back to peaceful San Pancho in the evenings.
Where to Stay
There's a variety of places to stay in San Pancho, although the majority of people probably find a rental house on one of the popular rental websites like Rentalo or VRBO.com. There are a couple of small hotels right in town and as you head out into the jungle, there is the Costa Azul adventure resort and a few more bungalows and Bed & Breakfast places.
For in-town lodging, try Roberto's Bungalow (www.robertosbungalows.com), five bungalows offering kitchenettes and modern amenities, just a few blocks from the beach. Whether you want to stay in the resort or not, Costa Azul (www.costaazul.com) offers great beach access and a beautiful pool for your enjoyment. 
There are three levels of accommodations with all-inclusive options (the best being the recently remodeled beachfront suites) when booked online, but visitors who wish to just use the facilities without staying overnight are welcome to do so free with a visit to the on-site restaurant (Wahoo's‹see restaurant round-up for more information) or for $10 US without a food/beverage purchase.
Just past Costa Azul is the lovely Casa Obelisco (www.casaobelisco.com) where John, Judi, Bill and Barbara will make you feel like one of the family. The casa has four rooms, each unique and offering garden and pool views. The property is directly across the street from the beach, or you can just enjoy the day lazing by the pool and sipping margaritas from the poolside bar.
Looking for a little more adventure on your vacation? You can give upscale camping a whirl out at Tailwind (www.tailwindoutdoor.com) where you can rent outdoor eco-bungalows and indulge in all manner of outdoor recreation with your hosts, including kayaking tours, bird watching and local nature hikes.
With the exception of Costa Azul, all of the actual beachfront properties are villas, many of which can be rented by the day or week, and are best suited to large groups.
What You Need to Know
San Pancho is situated in the jungle and on the ocean so while the sea breeze keeps most of the bugs away, insect repellent is a good idea, especially during the rainy summer months. While most properties spray for insects and so they can be rare, scorpions are native to the area so it's a good idea to shake out shoes and towels before using them and don¹t walk barefoot at night. If you are stung, there¹s no need to rush to the local hospital unless you begin to have trouble breathing, in which case head over and get a shot of antivenin. Like bee stings, scorpion stings aren¹t fatal unless you have a severe allergic reaction. They just hurt.
The UV index in this part of the world is a bit higher, so use a higher SPF sunscreen than you normally would and limit your sun between the hottest hours of the day when the sun is at its peak (11 am - 2 pm).
Electricity is 110 and most modern accommodations will have installed 3-prong outlets suitable for laptop power supplies. If you find yourself with only two prongs, you can purchase an adapter at the local hardware store for about 50 cents.
There is an internet café in town but most hotels and some restaurants offer free Wi-Fi to guests. Cell phone service is routed through the Mexican monopoly Telcel, which offers excellent coverage throughout Mexico although roaming charges will apply and are quite steep ($1.20 minute to call the US).
In recent years, Mexico has done a great job of cleaning up the water supply, so brushing your teeth and showering is not a problem and shouldn¹t cause any stomach upset. Stick to bottled water for drinking, however.
Because San Pancho is such a modern town, you can be assured that your accommodations will have hot water.
Renting a car at the Puerto Vallarta airport is an option for those traveling to San Pancho, however it is expensive ($65 per day, including all insurance required) and can be unnerving for timid drivers or those not used to the road regulations. The road between Puerto Vallarta and San Pancho is two lanes and winding with dangerous curves. It is frequented by large semi trucks, so the time it takes to traverse the 25 miles between cities can be unpredictable. Be sure to leave plenty of time in order to make your flight home or dinner reservations if you are headed into Puerto Vallarta. A better option is taking one of the many communal taxi vans ($40-60) or even the bus which runs frequently on the main highway ($2).
Like the rest of Mexico, the monetary unit is the peso (check the local bank windows for the current exchange rate) and you should get cash from a bank-related 
ATM (Banamex, Bancomer, etc.) for the best exchange rate. Once you arrive in San Pancho, there is an ATM should you need to replenish your funds. Most businesses operate on a cash-only rule so hard currency in small denominations is preferred.
Many of the locals speak at least some English, although you will enjoy your trip more if you know at least a few polite phrases in Spanish.
You can get additional information about real estate from any one of the local real estate offices.
For more information on San Pancho, try these websites:
