Never had drinks watered down. Probably wouldn't know it if they did, but that's a strange comment to make as all people I have met in the bar/restaurant industry in SXM have been excellent and honest. Yes drinks are reasonably priced particularly in comparison to other islands like Antigua, Turks and Caimans. Don't know about Happy Hour but go to "nowhere special"(think I saw happy hour prices) and ask for a BBC. Had a drink at La Samanna happy hour prices and was charged $18.00!!!!! Wont go there again, not because of price, but just felt uncomfortable as far too fake for my tastes.