You can find a lot of budget places in the beautiful Nyangshwe town. Expect to pay around 2 to 5 US$ including breakfast. We stayed at the Great Star Hotel, a very nice family-run hotel. We payed 2 US$ pp including breakfast (11/98). You can also have great lunch and dinner and they can organise boattrips on the canal. The Bright Hotel (Phaungdaw Saik Rd.: walk down the road and make a right at the inevitable paya). They charge 6 US$ for a double with bath. The management was a bit laid back, but there's a fine verandah and decent rooms (7/99). There is an electricity problem in Nuaungshwe, like they say "one day electricity come, one day electricity go !".