The capital of Bali is not generally a tourist area but there are a few main areas worth checking out. The Kumbasari market near the river gives an interesting overview of an Indonesia market with household wares and clothing on the third level, spices and dried goods on the second level and fresh produce in the basement.
If you’re looking for handicrafts there are quite a few shops in Jln. Gajah Mada selling similar items to those seen in Kuta, but without the hawkers. It’s a good idea to check out the government run handicrafts centre in Tohpati (Sanggraha Kriya Asti) which has a range of handicrafts at fixed prices and will give you a measure as to what’s available for a certain price.
The BypassProceeding on the main road (the bypass) from Nusa Dua to Sanur you will see on either side of the road, many pottery, wrought iron and furniture stores. You can find some good pieces if you look carefully and bargaing hard.