Hurricane Jimena weakened to a Category 2 story before it pounded the middle of Mexico's Baja California Peninsula on Wednesday morning.
The U.S. National Hurricane Center in Miami said it was expected to weaken further as it runs up the peninsula.
The Los Cabos resort region escaped major damage, only experiencing power outages, driving rains and thundering surf.
Authorities expressed concern about what might happen when the hurricane hits land farther up the coast.
"It could be ugly at Bahia Magdalena," state Interior Secretary Luis Armanado Diaz said, referring to a sparsely populated bay with fishing villages.
But Diaz said Jimena could alleviate the state's drought.
"If it continues like this, and there is not a major impact, it will help more than it will hurt," he said.
Mexican officials ordered everyone living in shantytowns in low lying areas to leave their meager belongings and head to higher ground.
No word yet on how their homes faired.