Ubud's location on Bali is somewhat of a mystery. If you examine a map of Bali, you'll find that the city is nestled among the hills in the central part of the island, which is a province of the Republic of Indonesia. Bali is situated in the Malay Archipelago and is part of the Lesser Sunda Islands. It is surrounded by two oceans, the Indian Ocean to the south and the Bali Sea, which is part of the Pacific Ocean, to the north. The Bali Strait separates it from the island of Java, while the Lombok Strait separates it from Lombok Island to the east.
This resort town is quite distinct from the rest of the island, especially when compared to the bustling and cosmopolitan Kuta, Bali's largest resort. Ubud has rightfully earned its reputation as an artistic and creative hub. It boasts numerous museums, a jewelry gallery, workshops for batik, woodcarving, and various other art forms.
While Ubud may seem like a single town, it's actually spread across 14 villages, each with its own local governance. The city is geared towards tourism, but not all of its neighborhoods are solely focused on catering to tourists.
The area is dotted with lush rice fields, and as you venture further away from the tourist centers, you'll encounter the daily life of the local residents. Ubud has a rich history, with its origins dating back to the 8th century when the Buddhist monk Rsi Markhandya arrived on Bali from Java. He established a temple in Champuan, which is just west of the modern town center. This area, along with the surrounding region, became a hub for medicine and healing.
Incidentally, "Ubad" means medicine in ancient Balinese. The currency used in Indonesia is the Indonesian Rupiah (IDR), but most hotels and car rentals also accept USD, and prices are often displayed in both currencies.