Oued Laou is a small city in Morocco at its mediterranean coast. As the town grew from a small fishing village but does not have much more to offer, there is also not much to see besides the clean and wide sand beach and the fishing boats.
There are frequent grand taxis from Tetouan (25Dh, 1hr) and a couple of busses which however go to the bus-station slightly out of town. There are only rare taxis going to Chefchaouen (or the other way around), a private grand taxi will be about 150-200 Dh depending on your bargaining skills.
The city center is easily walkable. Occasionally though, petite taxis can be seen.
There are not many options, but you should give the fish tajine (20Dh) offered in the center a try.
Touts can organize you a flat for about 150 Dh per night, check for a clean bathroom/kitchen and blankets. There are a couple of seedy hotels in the center on the way to the corniche. One hotel run by very friendly and relaxed raggae-staff is the only viable option and apparently has also a good restaurant. Try to get there without touts, as these are not really welcome by the staff.