re: Mexican border towns

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Yeah, you'll need a passport.

If you really want to do a short stint in a Mexican border town, I'd recommend going to Big Bend National Park in far West Texas. There's a border crossing station that leads you to a sleepy Mexican village that is safe. It's awkward at most to be the only Anglo in the town, but it's still a cool experience (not to mention a cheap bar) and they accept American dollars.

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This is the Boquillas Crossing. They just reopened it in the last year or so. They installed an automated entry point on the US side were you are supposed to show your passport on a video monitor. I have not been across but do visit the park and spend some time in Terlingua often as I only live about 85 miles from the parks west entrance.