The only ways to get to Aguas Calientes is by train or by foot. [http://www.perurail.com/ Peru Rail] departs from Cuzco twice daily. The journey through the Sacred Valley takes about 4 hours. Tickets should be bought in advance at the train station on Av Garcilaso in Cuzco.
There is a local train which leaves from Ollantaytambo at 8pm, which has a backpackers coach. It leaves from Aguas Calientes back to Ollantaytambo at 5:45am. This is currently the cheapest train to catch. A ticket costs US$31 each way and should be bought in advance. You can save a lot of time and money by buying directly online from www.perurail.com
If you're on a budget, or just adventurous, it's possible to hike up the railway tracks from Ollantaytambo or from the town known as km 82, where the Inca trail starts, this is about a seven hour hike (Note - hiking on the train tracks is prohibited).
It's also possible to hike in along the train tracks from Santa Teresa (4 hours). To reach Santa Teresa, take a local bus to Santa Maria from Cusco. It leaves Cusco at 8am (from the Santiago bus depot - S/.20.00) and passes through Ollantaytambo and Urubumba. It_Ls an 7 hour journey from Cusco to Santa Maria. At Santa Maria, take a connecting bus to Santa Teresa (S/.6.00 - 1.5 hours) or a taxi (S/.10.00 - maybe 1 hour). You can spend the night at Santa Teresa or trek onto Aguas Calientes. Walk 2 hours or catch a bus (S/.5.00) to the hydro electric plant (''planta hidroelectrica''), from there follow the signs that say exit (salida in spanish) to the train line up the stairs. It's an additional two hours of walking to Aguas Calientes from here, but it's possible to catch a train for $8.00 US to Aguas Calientes, possibly much cheaper if you are Peruvian. As the tracks are still in use, be careful, especially when crossing bridges.
[http://maps.google.com/maps/ms?t=k&ie=UTF8&msa=0&msid=108422827632995472164.00044eecdee2649259bcf&ll=-13.083491,-72.573624&spn=0.200646,0.205994&z=11&source=embed This Google user map] shows the route to Aguas Calientes via hiking from Santa Teresa and bus from Cuzco.
There are also hiking paths coming from Mollepata for the extremely adventurous. You will want to get your hands on some topographical maps beforehand, Hiking and Treking around Cusco is available for around S/.25.00 - S/.30.00 and has details on the routes you can take.
The town is compact and there are no vehicles apart from the buses to Machu Picchu and some work vehicles. To get around you need to walk, but the town is tiny so this is really not a problem.
There is also some hiking to be done. If you follow the train tracks towards Santa Teresa you will come across a trail on your right with a sign stating, 'A Montana Putukusi.' This leads up the mountain adjacent to Machu Picchu. It is mostly a vertical walking trail with quite a few old, wooden ladders which go pretty high. The summit takes about an hour. Wear long pants and closed toed shoes and bring some water. The summit offers amazing views of Machu Picchu.
Further along the tracks near the bridge to Machu Picchu you will reach an ecological centre with rainforest walks that will consume about one hour of your time, you can reach this by following the road towards Machu Picchu as to avoid walking through the railway tunnel. There is a stair case leading up to the train tracks near the bridge to Machu Picchu.
If you continue further along the tracks towards Santa Teresa you will reach the gardens of Mandor, which is private property and requires S/.5.00 for entry, this is a nice walk with many orchids and some rainforest and leads to a small waterfall, in this area there are three small ruins but there are no paths leading to them.
Heading in the opposite direction following the train tracks from Aguas Calientes towards Ollantaytambo you will see some other ruins and a waterfall.
Hiking on the train tracks is prohibited, although it seems to be the only way to reach certain destinations.
Near the bridge at the bottom of the path leading to Machu Picchu is a path leading to the Machu Picchu museum and botanical gardens, also worth checking out if you have the time.
In town there are many restaurants and internet cafes. Internet cafes charge about S/.3.00 - S/.4.00 per hour and there are also CD and DVD burning facilities to store your photos. DVDs cost S/.15.00 each to burn. Meals start from S/.10.00.
Cost for visiting Aguas Calientes from Cuzco in June 2008. Train ticket on Backpackers from Cuzco to Aguas Calientes = US43-00. The bus from the town Aguas Calientes up to Machu Picchu will cost around S/.41-00 per person for a return trip and you have to buy your ticket for entering the ruins at the cultural centre in Machu Picchu (if you're not doing the whole tour from Cusco with a guide). This ticket will cost S/122-00 per person and is valid for 1 entry over a period of 3 days (so if you've only got one night at Machu Picchu town, on a budget and arrive with the backpacker train at roughly 11:30am decide if you want to go up to Machu Picchu in the afternoon or early morning. Remember to take water and snacks with you as a local beer in a glass bottle will cost you an astronomical S/.16-00. Train from Aguas Calientes to Ollantaytambo US53. The bus from Ollantaytambo to Cuzco roughly S/7-00, but you can get a taxi for S/50-00 for up to 4 people which will be faster.
There is a big market along the road to Machu Picchu, and a big handicraft market in front of the railway station. Some shops sell hand-painted t-shirts, which are far more expensive than other t-shirts in Peru but are a little more creative.
If you plan on using a credit card for transactions, be sure to bring a Visa. If an Aguas Calientes business accepts credit card, by and large they only accept Visa.
The town is full of pizza restaurants, which are a safe option. Menu Hoy or Todays Menu is usually S/.10.00 - S/.15.00 and depending on where you go will be something along the lines of -
Palta Rellena (Stuffed Avocado) Soup Main Course (generally trout, beef or chicken) Tea, Coffee, Fruit Juice, Wine or Pisco Sour
Alpaca is definitely worth trying if you get the chance, in my opinion it tastes better than beef or lamb.
The smaller restaurants up the hill will often offer twice the food at half the price than the larger establishments, and the quality is usually the same.
Indio Feliz (Happy Indian) is a nice French restaurant for those willing to spend a bit more than at the other places. Meals will cost about 30 soles here plus drinks but the food is outstanding. It is owned by a Frenchman and his Peruvian wife, who are both very friendly.
Every restaurant has an advertising guy whom will give you a business card and their name - it can get quite annoying as there are many restaurants whom will try to lure you into their establishment. The ad man will take you to the bar/restaurant and seat you and for this they'll get a 10% tax added to your final bill and then if the service was good you'll want to tip the normal 10% of the bill. You'll end up tipping 20%. One could see it as creating jobs... yet annoying.
Signs warn that it is not allowed to sell and/or consume alcoholic beverages after 11pm. However, it's not too hard to find a place to drink some beers after this time.
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