The best time to come to hotwater beach is as close to low tide as possible. You can arrive up to 2 hours before low tide and 2 hours after low tide but if you come later or earlier than that you may miss out.
To access the hot water, you need to make your way towards the offshore rock. There is about 2 large springs that come out opposite this area. Digging down into the sand with a shovel here will reward you with hot water. The water tempurature is hot, approx 65°C so it is essential that you use a shovel and not your hand otherwise you may get burnt.
The best time to come to hotwater beach is early in the morning or evening. Nothing beats watching the sunrise or sunset sitting in relaxing hot pools, plus it is often a lot less crowded during these times.