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.
Villarrica does have a charm of its own; it's a more authentic Lake District pueblo, and some travelers find that aspect more appealing, especially in the summer. The center of town here hums with activity as regular townsfolk go about their daily business. The town is also closer to Temuco and attractions such as Lican Ray on Lake Calafquén, Panguipulli, and the Coñaripe and Geometric hot springs.