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The SITA Bus is the recommended way to travel to and in Positano, despite its narrow, twisty roads. Though it may be a little daunting at first, you'll be glad you took the bus instead of trying to navigate the unfamiliar roads by yourself. The drivers are safe and accustomed to the twists and turns, and the bus fare is inexpensive.
With its narrow, winding streets, and limited parking, only a certain number of cars is permitted in Positano in a day, so there's another reason to use the bus. Touring the Positano coast by bus is an unforgetable experience. Driving there forces you to keep your eyes on the road every second, thus missing the wonderful scenery. In any case, the only road through Positano is one way. When the bus stops, you're out. If you're driving, there's no turning back.
You can take a boat between Positano and other destinations on the Amalfi Coast, such as Salerno or Amalfi. Seeing Positano from this angle gives you a whole new perspective and respect for the ruggedness of the area. Go to MetrodelMare (Metro of the Sea) for schedules, itineries, and ticket information.
As small as Positano is, there is no real need for taxis unless you are traveling out of the area. Some hotels contract taxis for their guests as the need arises, but for the most part, the taxi business does not thrive in Positano. Most people walk, or hop on the bus. By the way, foot travel is a nice way to see Positano, downhill at least.