If you want to get away from the overcrowded hustle and bustle of Albufeira and something more of the real Algarve than Vilamoura, but don't want to be far from either, then a holiday in Olhos d'Agua may well fit the bill. It is a popular fishing village located in-between the two. Most of the activity in Olhos d'Agua is on the main street, with this road running down to the hill to the beach, and the promenade, which is fringed by palms and a very pleasant stroll. Here you'll find a fair selection of bars and restaurants. While it can get quite busy in the summer months, compared with Albufeira, it is quiet resort, and out of season, very quiet indeed. However in season, parking can be a bit of a nightmare.
Apart from the beach, bars and restaurants there is not a huge amount to do, it is best suited to families who want a relaxing beach holiday or as a base for exploring other areas in the Algarve. It is also a popular destination for Portuguese families, which is always a good sign.
There are no nightclubs here, so if that's what you are looking for then you'll have to pay a visit to the "Strip" at Albufeira or Vilamoura. It is 6km to Albufeira, but only about 3km to the "Strip", where you'll find the liveliest of the nightlife. Walking will take you about 40 minutes, although there is a regular bus service, which is cheap. Alternatively a taxi will only cost a few Euros.