We stayed at the Kiotari Bay and went to the waterpark, it cost about 55 euros for the day but our children were aged 6 and 3, i would suggest hiring a car instead of a taxi, as we booked one from the hotel for 70 euros for 3 days, Rhodes town was about 20 minutes drive from the waterpark, and there were some nice places to eat in the old town, if you park around the stadium it was free, but sometimes you could find a place near the harbour. The buses are quiet cheap but the only run about every two hours and the last one is about 7.30pm.
We went two years ago in August and suprisingly it was not too busy, but I would go as early as you can and then you have a wider choice of areas to pick your sunbed
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