The walkable core of Dili runs from Motael Church along Avenida de Portugal to the Government Palace and out as far as the Centro Cultural and Areia Branca beach. You can cover this on foot, allowing for heat — bring water and a hat, and rest in air-conditioned cafes between stops.
Yellow taxis are everywhere and cheap. Always agree the fare before you start (most short hops in the centre are USD 2–3; to Cristo Rei or the airport about USD 5–10). Few drivers use meters.
Microlets are the small public minibuses that ply fixed routes — flat fare USD 0.25, hop on and off, useful if you are staying longer than a couple of days. The route numbers are painted on the front.
Car hire is the practical option if you want to go beyond the city; a 4×4 with driver is the norm given the state of the roads outside Dili. Several operators are based at the better hotels and around the seafront.