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Villarrica: 25km (16 miles) W of Pucón, 764km (474 miles) S of Santiago; Pucón: 112km (69 miles) E of Temuco, 789km (489 miles) S of Santiago

Pucón is where the tourists head, but Villarrica is where the locals live. It's a quiet town that never really took off as a vacation resort, in spite of the fact that the view is so much better here, with the volcano rising majestically beyond the lake. There are a few good and inexpensive lodging options here, if you decide to leave the tourism hubbub of Pucón. But it's farther away from Villarrica and Huerquehue national parks and the ski resort.

Nationally and internationally known as the "Adventure Capital of Chile," Pucón offers a multitude of outdoor activities, including rafting, hiking, skiing, canyoning, kayaking, and fly-fishing. Yet what makes Pucón a great all-around destination is its flexibility. There's also an abundance of low-key activities, such as hot spring spas and scenic drives through gorgeous landscapes. Or you can just relax with a good book on the porch of a cabin or throw a towel on the beach and sun yourself, as hundreds do during the summer.

Pucón is a picturesque little town almost entirely dependent on tourism, but, thankfully, it has not embellished its streets with gaudy tourist traps. Instead, a creative use of timber creates the architectural tone. During the early 1900s, Pucón's economy centered on the timber industry, but the town's fate as a travel destination was sealed when the first hotel went up in 1923, attracting hordes of fishermen. Ten years later, the government built the stately Hotel Pucón, drawing hundreds more visitors each year, at that time traveling here by boat from Villarrica. Today there are many lodging options and even more adventure outfitters ready to fill your days.

It is important to note that the summer season, particularly from December 15 to the end of February, as well as Easter week, is jam-packed with tourists. Hotel and business owners gleefully take advantage of this and jack up their prices, sometimes doubling their rates during that time.