In the Turks and Caicos, the locals call themselves "Belongers." It's hard not to be envious of that title when visiting this pristine string of 40 islands and cays covering 193 square miles just east of the Bahamas. Fortunately, though, these chilled-out Belongers make it easy for visitors to join in. Within the first 48 hours of my arrival, I've received an invite to a dance party and an offer to go parasailing. Even the sea life is friendly: I've already swum with a pod of frisky dolphins a mere 300 feet from the white-sand shores of Grand Turk. Now that's hospitality.

There's plenty more to like about the Turks and Caicos: Only eight of the archipelago's tiny islands are inhabited, the entire chain sits on one of the largest coral reefs in the world, floury white beaches are everywhere, people speak English, and the official currency is the U.S. dollar. Since the time of Columbus—some argue that the explorer made landfall here in 1492—it's been off the radar for most everyone except diehard divers, long-haul sailors, and tropics junkies. But lately these British West Indies isles have gone high-profile, managing to reel in some of the world's most elite luxury hotels.

Word of mouth helped establish TCI as a jet-set retreat. It started in 1998, when renowned hotelier Christina Ong built the private island resort of Parrot Cay after her daughter returned from a dive trip there. Now, with new nonstops from Boston and Fort Lauderdale, as well as existing flights on from New York, Philadelphia, Charlotte, and Miami, TCI is no secret. Condos have sprung up along the 12-mile swath of Grace Bay Beach, on the main island of Providenciales ("Provo"), and last February a new Carnival cruise-ship terminal opened on the north side of Grand Turk.

The more remote spots along the archipelago, however, are a long way from overdevelopment—in fact, from any development at all—and this is where top resorts are staking their claim. In March, Singapore-based Amanresorts opened Amanyara, its first Caribbean outpost, on Provo's rugged Northwest Point. It's accessible only via a teeth-rattling 20-minute drive from the airport, but the reward is clear: 40 glass-walled guest pavilions direct the focus to the outside, whether it be a crashing sea view or sun-splashed reflecting pool, and 1,500 feet offshore a pristine coral wall drops 2,000 feet to the sea floor.

"We looked at many possible locations," says Trina Ebert, executive director for Amanresorts. "But when a 99-acre site adjacent to the 5,000-acre nature reserve at Northwest Point became available, we jumped at the chance. You can practically walk off our beach and fall between two of the best diving walls in the islands."

To its credit, the government has been careful to safeguard the natural environment while building the tourist economy. A list of 33 protected areas includes marine sanctuaries, wetlands, endangered iguana habitats, and breeding grounds for seabirds and turtles. Uninhabited for more than a century, the 11-square-mile protected island of West Caicos is allowing a limited new residential settlement anchored by the $300 million Ritz-Carlton Molasses Reef. The 125-suite hotel is scheduled to open in early 2008, the first of a smaller brand of "reserve" hotels for the group; a full-service spa will spotlight indigenous treatments. The West Caicos development team, composed of both locals and foreigners, hired world-famous Kenyan eco-architect Hitesh Mehta to draw up a master environmental plan for the island that outlines preservation guidelines for years to come. On Mehta's recommendation, the hotel capped its size, opting for one- and two-story villas spread out over a half-mile of beachfront, and the resort will allow only bicycles and electric vehicles—no cars allowed. Ultimately, 90 percent of the island will remain undisturbed, protected by an environmental-stewardship program endowed by developers with the participation of owners and residents.

And that's not the end of TCI's extreme makeover. Near Parrot Cay's $2,245-a-night-and-up beach villas, across the shallow aquamarine channel on North Caicos, eco-conscious luxury group Fairmont Hotels & Resorts is partnering with locals to build a 150-room hotel and a 150-room condominium hotel, slated to hit the island's western shores in 2009. Like its sister properties, the Fairmont Turks & Caicos will participate in waste-management and energy-conservation initiatives, enroll its golf course in an Audubon certification program, and develop its own island-specific environmental project.

The master plan for the islands, deputy director of tourism Ralph Higgs told me, is to keep TCI a "boutique luxury destination," with an emphasis on eco-tourism and quality, not quantity, when it comes to development.

So far, it seems TCI has managed to attract a global audience without losing its soul. Little gems like Salt Cay, a time capsule of an island with just 60 residents, remain untouched, easy, and accessible. At the 16-room Bohio Dive Resort, on the other side of Grand Turk from the new cruise terminal, life continues as it has, lazily and locally. Everyone still knows everyone else's name. "It stays pretty quiet around here," says owner Kelly Shanahan when she greets me after my dive. "We hope the people stay on that side."

Access & Resources

GETTING THERE: During high season (November through May), there are plenty of nonstops to Providenciales from the U.S.; prices start at about $400 from all hubs during the month of November. American Airlines offers service from New York, Boston, and Miami (800-433-7300, www.aa.com); Delta flies from Atlanta (800-221-1212, www.delta.com); and U.S. Airways from Charlotte (800-428-4322, www.usairways.com).

WHERE TO STAY: At Amanyara (doubles from $1,350; 866-941-8133, www.amanresorts.com), you'll find solitude and a decidedly Southeast Asian influence on the resort's sleek, slatted wood pavilions. The Ritz-Carlton Molasses Reef (doubles from $695; 649-941-7480) has yet to open its doors, but is sure to draw an elite crowd to its exclusive villas and protected wildlife preserves. Until then, Parrot Cay is still one of the best places to get marooned on a private island (doubles from $485; 877-754-0726, parrotcay.como.bz). For great dive access and a laid-back vibe, check in at Bohio Dive Resort (doubles from $130; 649-946-2135, www.bohioresort.com).

WHAT TO DO: Diving is the thing here—if you don't know how, learn. The stay and dive packages are great value at Bohio (see website for details), with unlimited free shore diving and the option to hop on the resort's catamaran to other sites close by, including Salt Cay. From Providenciales, go to Dive Provo (800-234-7768), a reputable operator that offers trips to five different sites—Grace Bay, Northwest Point, West Caicos, French Cay, and Pine Cay—around the island.

RESOURCES: With no required visa for American tourists, English as the official language, and the U.S. dollar as the coin of the realm, TCI is easy to get to and around. Contact the Turks & Caicos Tourist Office (800-241-0824 for the New York office, on island at 649-946-2321; www.turksandcaicostourism.com) for more information.