The casitas were pretty darn close to the water. We stayed in the Rainforest Suite, which was only 50 ft from the water ~ the casitas weren't too much farther than that. The grounds at the VH are absolutely gorgeous.
In my opinion, it was just the right distance from town...about 2 miles, I believe. It was far enough to feel 'secluded', but close enough to venture into town whenever we felt like it. We had a golf cart for the week (we got it from VH) and we went into town almost everyday. It was perfect.