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Algarve
I would say the best place for you would be Albufeira or Praia da Rocha. Lots of expensive overrated nightlife as well as long sandy beaches. A waterpark is always a day trip and involves driving (bus transfer or car).
On the other hand, Carvoeiro has a smaller yet considerably safer nightlife and beautiful secluded coves (I am sure you have checked out the http://www.carvoeiro.com/Beaches/Beaches.htm)
Take your pick
Teenage daughters
Go for Carvoeiro. Not the liveliest place in the world but safe for a 16 and 13 year old. Albufeira can be a "rat-hole" - not necessarily the locals but the visitirs. Rocha is ok but I still go for Carvoeiro.
Your teenagers can visit the bars with you, many with live muisc and other fun (karaoke!). The 16 year old will be able to get into the sole disco without a problem and feel safe there - even with the foam parties!!
Your teenagers can visit the bars with you, many with live muisc and other fun (karaoke!). The 16 year old will be able to get into the sole disco without a problem and feel safe there - even with the foam parties!!

