We arranged accommodation in Kanawa at the Kanawa Tourism Office in Lubuan Bajo (it's on a corner in the main strip in town past “Warung Mama”). There is only one place to stay on Kanawa, and they no longer offered the cheaper bale accommodation, so we ended up paying 700,000 Rp to get a Bungalow for a night (expensive by Indonesian standards, but the boat ride to and from Kanawa is also included in the price). Bringing food and drink is officially banned, but the restaurant there is rather expensivem, since it has no competition, so I'd recommend smuggling in some water and snacks at the very least (as long as you take the rubbish with your of course).
The free ferry runs at 12noon each day, and it takes around 1 hour to get to Kanawa. We got off the boat and walked down the jetty to the beach. Already we could tell that this place was going to be great. The water was clearest I have ever seen anywhere, and as we walked down the jetty we looked down at the huge schools of fish and coral just feet below us in the shallows.
We got our room key, grabbed a scuba mask (30k without fins), and literally dove right in. Wow, the snorkeling here was head and shoulders above anything I've ever done, it rivaled the SCUBA in Koh Tao. Tonnes of electric blue starfish, clown fish, butterfly fish, bannerfish, oriental sweet lips, sea urchins, crayfish, and the occasional turtle and stingray. As we sat on the beach that evening with a couple of Bintangs, we really wished we had booked to stay here longer than one night. It was like having our own desert island.