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20km (12 miles) N of Puerto Montt; 996km (618 miles) S of Santiago

Puerto Varas is one of Chile's most charming villages, located on the shore of Lago Llanquihue. Like Pucón, it is an adventure travel hub, and it is also the gateway to the Parque Nacional Vicente Pérez Rosales. Unlike its neighbor Puerto Montt, 20 minutes away, it is a spruce little town, with wood-shingled homes, a rose-encircled plaza, a handsomely designed casino, and an excellent tourism infrastructure that provides all the necessary services for visitors without seeming touristy. It can get crowded during the summer months, but not as busy as Pucón, seemingly because of its distance from Santiago. The city was built by the sweat and tenacity of German immigrants, and later it became a port for goods being shipped from the Lago Llanquihue area to Puerto Montt (mostly timber). Today most of the area's middle- and upper-middle-class residents call Puerto Varas home and commute to Puerto Montt and other surrounding places for work.