The town itself is small enough to walk. For everything else, the river is the main road: wooden cooperative boats (the "Dalyan Boats Cooperative" runs the licensed service) shuttle along set routes — Iztuzu, mud baths, Caunos — with pickups at the central jetty. Prices are posted; no need to bargain.
For destinations off the river — Köyceğiz town, the Sultaniye springs, day trips up the coast — there are minibuses from the small bus station, or you can rent a scooter or a car. The road network in the immediate area is good.