Founded around 1650 by the British as Charles Town, the town was renamed in 1695 after Fort Nassau. Due to the Bahamas' strategic location near trade routes and its multitude of islands, Nassau soon became a popular pirates' den, and British rule was soon challenged by the self-proclaimed "Privateers Republic" under the leadership of the infamous Edward Teach, better known as Blackbeard. However, the alarmed British soon tightened their grip, and by 1720 the pirates had been killed or driven out.
Today, with a population of 260,000, Nassau contains nearly 80% of the population of the Bahamas. However, it's still quite low-rise and laid back, with the pretty pastel pink government buildings and the looming giant cruise ships that dock daily.
Orienting yourself in central Nassau is fairly easy. Bay Street, which runs parallel to the shore, is the main shopping street, filled with an odd mix of expensive jewelry boutiques and trashy souvenir shops. The hill that rises behind Bay St contains most of the Bahamas' government buildings and company headquarters, while the poor residential Over-the-Hill district starts on the other side.
Nassau's Lynden Pindling International Airport (IATA: NAS, ICAO: MYNN) is the largest airport in the Bahamas. Most major U.S. airlines (with the notable exception of Southwest) have flights to Nassau. Limited service from Toronto and London also exists.
The two most popular Fixed Based Operators (FBO) located at Lynden Pindling International Airport are Executive Flight Services and Odyssey Aviation. Air taxi and air charter companies such as Jetset Charter  fly a variety of private charter aircraft and jets, from charter luxury Gulfstream's down to economical piston twins for small groups and individuals into and out of Nassau.
The airport itself has seen better days, but the free drinks occasionally served on arrival and the live band serenading the Immigration hall help set the tone. No public transport is available at the airport, but there's a list of fixed taxi fares posted at the exit. It's about US$25 and 10 mi (16 km) to most hotels in central Nassau.
On the way back, note that there are three terminal concourses: domestic and charter flights, flights to the US, and non-US international flights. US Immigration/Customs preclearance can be very time-consuming, so show up at least two hours before your flight. Security for other destinations is considerably more laid back, and an hour should suffice.
Nassau is a favorite port of call for the many cruise ships plying the Bahamas. Up to seven cruise ships can dock at the Prince George Wharf Cruise Terminal adjacent to downtown Nassau.
By water taxi
A water taxi service is an available alternative to a taxi to get to Paradise Island from downtown. It is picked up under the bridge and costs $6 round trip. The water taxi stops operating at 6PM.
Minibuses (locally know as jitneys) act as the bus system of Nassau city and New Providence island. Jitneys are found on and near Bay Street. The famous #10 Jitney to Cable Beach loads passengers on George & Bay Streets (in front of McDonalds, across from the British Colonial Hilton). Other jitneys are located on Charlotte & Bay Streets. A bus will typically wait until it's full before departing. Understanding the various routes can be complex. Many have destinations painted on the bus, but there is no standard as they are run by multiple companies and individuals. Ask around for your destination. Note that there is no jitney that goes to Paradise Island (Atlantis Resort).
Journeys cost $1.25 per person, per ride. A round trip, even if not getting off the bus (ie: sightseeing), is counted as two rides. Payment is received by the driver when disembarking. No change is given, and there is no transfer credit for changing busses.
The Jitney is definitely a very inexpensive way to enjoy the local culture. Be aware that the jitneys stop operating between 6 and 7 PM. The only way back to downtown after 7 PM is by taxi which can be quite expensive. The buses (also called Jitneys) are 32-seaters and travel to many parts of the Island. They operate from 6:30 a.m. to 6:00 p.m. daily, except on Sundays when there is limited service. The basic fare is $1 per person and $2 for areas on the outskirts of town. Exact fare is required. The schedule is as follows:
From Bay Street (opposite Parliament Street) to the Eastern end of the Island (including foot of the bridge to Paradise Island) and return -- Bus Numbers: 1, 9, 9A, 9B, 19, 21, 21A, 23
Taxis, often minivans and always identifiable by their yellow license plates and little Gothic blackletter "Taxi" lettering, roam the streets of Nassau. They're equipped with meters but will usually refuse to use them, so agree on the fare in advance. Expect to pay $15-$20 for even the shortest of trips from downtown to Cable beach.
Here are some of the rates: $4 (per person, $11 minimum) from Paradise Island to Downtown.
You could also rent a car. All major U.S car rental shops are in Nassau. Worthy of note for travelers from the UK is the very British feel of the roads. Unlike the nearby US, the Nassau roads are left hand drive, have UK road signs and even the odd roundabout.
Scooter (small motorcycle) rental is also popular in Nassau.
Bicycle rental is not popular and not recommended as traffic is bad, there are many blind corners in the old streets of Nassau, and cars drive recklessly and on the left side of the road, which you may not be used to.
Within downtown Nassau, you could walk around. Distances are very short and a walking tour is a pleasant way of exploring downtown Nassau.
The bus tours are pretty interesting. They'll drive you around, and tell you about the local government, tell you about different points of interest, and take you to old forts, and to Paradise Island, to see the famous Atlantis hotel resort and its stunning aquarium.
Get out of the hotel and try real Bahamaian fare. You can get greasy fish, sides and desserts at one of the holes-in-the-wall in downtown Nassau for around $8. On the upscale side, there's no shortage of waterside seafood restaurants where it would be easy to part with $50 for an excellent piece of lobster. Sbarros, McDonalds and Chinese restaurants are mixed in to satisfy the budget diner or someone who has had enough conch.
Nassau isn't a spring break mecca for nothing. The club scene is nightly and rowdy. Some popular establishments:
Cover charges average $20, although all major hotels sell "passes" for $5. With a pass, cover charge is only $5, so you actually pay $10. Cover charges on weekends can climb up to $45, so it's a good idea to get a pass from your local taxi driver/hotel desk.
You can also opt for an all-inclusive entertainment pass, which will include a schedule. Expect to follow this itinerary with at least 5,000 other co-eds. (It might be a good idea to pick up this schedule even if you don't plan on participating. It will give you a good idea of places to avoid on certain nights.)
Drinks in clubs can get expensive, depending on the club and its location. Most locals "drink up" before going out, to defray this cost... That or they can be found in the parking lots with a cooler ;) Expect to pay at least $4 for a beer and $5 for a cocktail. The one exception is rum, which is cheap and plentiful. Cocktails with rum at a club, will be strong.
One option for lodging that you might consider is to use priceline.com to bid on hotels in the area of cable beach. The Sheraton that normally charges around $232.00 a night or more can sometimes be had for $100.00 a night by bidding on rooms. Obviously the cost would depend on availability and also bidding several months prior to your visit.
The "Over-the-Hill" area south of downtown is the poorest part of Nassau, and tourists might want to be wary. It is, however, much nicer than "slums" in the Third World and, indeed, parts of the United States.
Some criminals target restaurants and nightclubs frequented by tourists. The most common approach is to offer victims a ride, either as a "personal favor" or by claiming to be a taxi, and then robbing and/or assaulting the passenger once in the car. Take care to ride only in licensed taxis, identifiable by their yellow license plates.
Be wary of the natives offering goods and services. They will tell you anything to get you jet-skiing, on booze cruises, etc.
Locals may solicit tourists with offers of marijuana, hairbraiding services, or a taxi ride. It gets monotonous but a friendly "no, thank you" and moving on will keep both you and the local happy.
Most Cuban cigars for sale in Nassau are counterfeit. Buy only from reputable dedicated tobacconists. See warning on main Bahamas page.