Halfway down the western edge of Lago Llanquihue lies the small town of Frutillar, a destination for European immigrants in the late 19th century and, today, arguably the most picturesque Lake District community. The town—actually two adjacent hamlets, Frutillar Alto and Frutillar Bajo—is known for its perfectly preserved German architecture. Don't be disappointed if your first sight of the town is the nondescript neighborhood (the Alto) on the top of the hill; head down to the charming streets of Frutillar Bajo that face the lake, with their picture-perfect view of Volcán Osorno. The town has rapidly developed its touristic infrastructure, and it is worth a stop.
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