Virtual Tourist - information on taxis and water taxis.
Water taxi is the only way to get to Lovers Beach from Medano Beach. Water taxis at every beach hotel $3-5 per person to downtown negotiable.
Public bus stops in front of Villa Del Palmar every 20-30 minutes and runs from 6:00 a.m. to 10:00 p.m. It's a dollar per person to downtown Cabo. We rode the bus in Key West and it can be fun. I know they're rattle traps and have no AC. Then, take a cab back for $7 for 4 people.
Be sure to agree on a price with any taxi driver before you get into the taxi. If you don't, you could be overcharged. Forewarned is forearmed.