The main dive destinations are the waters around Isla Iguana  and the Islas Frailes.
Isla Iguana has extensive coral fields, though human pressures and El Niños have damaged them. The Islas Frailes, considerably farther out, off the southeast tip of the Azuero , are a pair of rock outcroppings that offer good open-water diving. There is no beach on either of the Frailes; all diving is from the boat.
There are also two wrecks south of Punta Mala, in 20-meter-deep waters: a U.S. Navy ammunition ship that dates from before World War II and a shrimper.
Diving is best during the rainy season, April–December. December–mid-March, dry-season winds stir up the sea and limit visibility. Wetsuits are necessary in January as protection from the cold waters of the Humboldt Current. They also fend off the stings of tiny jellyfish.
There’s more demand for sportfishing than diving around here. This area has been nicknamed the “Tuna Coast,” and there’s even a major international tuna research facility, Laboratorio Achotines, on the coast 30 kilometers south of Pedasí . Other big fish found in these waters include sailfish, wahoo, and black, blue, and striped marlin.
It’s possible to hire a local fisherman to take you sportfishing, but this will be in a fairly small panga, you’ll probably need to bring your own fishing gear, and there’s a decent chance your captain may be drunk even in the early morning. Only go this route if you get a local recommendation from someone you trust; the recommended hotels should be good sources. Expect to pay US$150–200 for this adventure.
Sportfishing trips with a professional operation that has a well-equipped boat and good gear are increasingly easy to come by, but expect to pay upwards of US$700 for a day out.
Buzos de Azuero (tel. 995-2405 or 995-2894, www.dive-n-fishpanama.com ) is the only diving and deep-sea fishing operator in town. It’s also known as Dive-N-Fish Pedasí. It offers weeklong packages that include four nights in a Pedasí hotel , two nights in Panama City , transfers, gear, and breakfasts. Packages that include three days of sportfishing or diving are US$795/person, two-person minimum.
It also offers tours of area attractions including horseback riding, snorkeling at Isla Iguana , whale-watching, a visit to Laboratorio Achotines, and turtle-watching at Isla de Cañas  for US$45/person, two-person minimum.
It’s located between the Accel gas station and the CEFATI building at the north end of town. It recently built the Pedasí Sports Club (www.pedasisportsclub.com ).