I will join with those who like a tubing rope. As they noted, tubing ropes are made of polypropylene. The polypropylene lines are great because they have a little elasticity. That means that when you pull them taut, they give a little. That is kinder to the boats at both ends of a polypropylene line. It also makes the rope less likely to break where something like a nylon rope is more likely to snap. The other advantage of a polypropylene tubing ropes is that they float. Using nylon ropes makes it pretty much certain that you'll suck one into a prop. I would like to say I didn't have to learn that lesson by sad experience . . . twice.
I bought a straightline brand. They have a little float at one end that helps with the whole floating concept. The current model looks like this:
Where I differ from others is that rather than use some kind of a metal hook at the end, I thread the rope through my bow eye then bring it up to a side cleat where I run it trough the center of the cleat and put the loop of the rope around the side cleat like this:
I make a similar loop through my towing cleat on my houseboat. I like this better than a metal hook at the end for two reasons. First, someone undoing the rope from inside the boat being towed doesn't have to lean over the bow precariously. I think it's a little safer to avoid leaning out like that if possible. Second, and more important, a rope without a metal end still floats. A rope without a metal end retains all of the floating advantages that we tried so hard to get in the first place.
I agree that we all use larger ropes than necessary for towing. My 6,100 pound rope would allow me to dangle twice the weight of my boat directly off a cliff and still hold. Even so, it is easy to talk yourself into a big rope. A rope rated for 2,375 pounds is $20. But for only $5 more, you can get one that is rated for 4,100 pounds. Once you're at the $25 price of a 4,100 pound rope, you're only $10 away from a $35 rope rated for 6,100 pounds. So I spring for the 6,100 pound rope. Here is a link to the place where I bought mine:
http://www.marine-products.com/straight-line-tube-rope-supreme-6p-grn.html
One last thought. The best answer is one that I hope to implement one of these days. It is called a boathitch, made by folks that developed it at Lake Powell for Lake Powell. Here is a link:
http://www.theboathitch.com/ I will admit they're a little expensive, but they have some distinct advantages.