Ubud
Situated in the hills 20km north of Denpasar, Ubud is the serene cultural center of Bali. Extensive development in recent years has meant that Ubud has engulfed a number of nearby villages, although these have retained their distinct identities. Head off in any direction and you're in for an interesting walk to a secluded craft hamlet, through the rice paddies or into the dense M0nkey Forest, just south of the town center.
In Ubud itself, the Puri Lukisan Museum displays fine examples of all schools of Balinese art in a beautiful garden setting. There are several other quality galleries such as Museum Neka, which features work of some Western artists who have painted in Bali, and Agung Rai Gallery, a commercial operation which also houses a small, but imp0rtant, permanent collection. The homes of influential Western artists Walter Spies and Rudolf Bonnet, who played key roles in transforming Balinese art from the purely decorative, can also be viewed. Ubud is a good place to see Balinese dancing and hear Balinese music, and it has some of the finest restaurants on the island.
Tenganan
The ancient village of Tenganan, inland from the east coast port of Padangbai, can only be reached by motorbike or on foot. It's a walled Bali Aga village, busy with unusual customs, festivals and practices. It's the center for the weaving of the little-seen double ikat cloth, and ancient versions of gamelan and accompanying dances are performed here. The nearby towns of Amlapura and Tirtagangga are known for their decaying water palaces - relics of the power of the Balinese rajahs - which are surrounded by beautiful terraced rice paddies.