The rock tombs of Caunos are the towns' enchanting feature carved into the cliffs. Dalyan lies on the eastern bank between Lake Köyceğiz and the sea at the head of the Dalyan Delta. Boats line the riverside ready to take the thousands of summer visitors down the delta to the protected İztuzu beach; a marine turtle-nesting conservation zone. Upstream boats head for the lake and mud baths that apparently rejuvenates the skin of sun burnt tourists.

The town is a popular holiday resort with many restaurants and small friendly hotels lining the riverbank. As well as tourism, fishing and agriculture are a big part of the towns' economy.