Just behind the Castle of St. Peter is Bodrum's most interesting area. The narrow pedestrian alleyways here are lined with vine-draped, whitewashed, and stone-cut cottages that look like they fell off a postcard.
Much of Bodrum has been modernized, so this is one of the few parts of town where you can still get a feel for the fishing village it once was before tourism moved in.
It's an incredibly charming place for a late afternoon wander, and heaven for photographers. There are plenty of cute boutiques and cafés in this area if you need to sit down and relax after strolling.