About 20 miles north of Frutillar with stunning vistas of Lake Llanquihue and the Osorno volcano, the road passes along handsome German farmhouses dating back over a century with rolling meadowland. Puerto Octay is an attractive little town on the lake nestled among the hills. With a steepled church and balconied houses, it looks as if it was transplanted directly from the German Alps to Chile.
Settled in 1852 by German settlers, today the Germanic tradition in these parts is still strong. Local stores hawk homemade sausages, cider, cheeses, homemade sauerkraut and dense, dark breads. A little stroll around town reveals its history and nearby there are beaches, perfect for a picnic on a sunny summer afternoon.