Punta del Diablo, is a little fishermen's town, five kilometers away from Santa Teresa, and close to the border with Brazil, in the state/region/department (departamento, i'm never sure how to translate this) of Rocha, Uruguay.
I don't know how to put it, but the place is weird, like good weird, is like is not Uruguay. I remember the first time I went there, after a lengthy walk from Santa Teresa around seven years ago, it struck me the scene I've found there, like nothing I had seen before in my country. I saw shored fishing boats by the beach, one little pub playing reggae, plus like about a block of hippie stands in a row, selling handcrafted earrings, collars, and such, close to a peninsula shaped by big rocks.
Nobody knew the place ten years ago, while now in summer a rent there is about 60 bucks a day, for a crumbling small ranch, close to the beach. This year I even spotted some foreign tourists, which was unheard of some years ago.
Even though it's getting trendy, and more sophisticated, it still retains the jamaica no problem vibe, with the hippie little shops, surfers, seafood restaurants, lack of paved roads, and everybody in summerwear style.
If you go there you must try "Buñuelos de alga" (something like seaweed fritters, or fried doughs), since it´s the specialty of the town.
Check what Chuck Stull in his blog writes about it. The few pictures I have were taken in the afternoon, and in cloudy days, so they are no the best, but I hope you'll find them illustrative.