Villarrica was founded in 1552, but the Mapuche wars prevented extensive settlement of the area until the early 20th century. Founded by the Spanish conqueror Pedro de Valdivia, it was a Spanish fortress built primarily to serve as a base for gold mining in the area. The fortress's mission succeeded up until 1599, when the Mapuche staged an uprising here and destroyed the original town. On December 31, 1882, a historic meeting between more than 300 Mapuche chiefs and the Chilean government was held in Putue, a few kilometers outside of the town. The next day, the town was re-founded. Today this pleasant town of about 40,000 people, situated on the lake of the same name, is in one of the loveliest, least-spoiled areas of the southern Andes, and has stunning views of the Villarrica and Llaima volcanoes. To Villarrica's eternal chagrin, it lives in the shadow of Pucón, a flashier neighbor several miles down the road. Many travelers drive through without giving Villarrica a glance, but they're missing out. Villarrica has some wonderful hotels that won't give you a case of high-season sticker shock. Well-maintained roads and convenient public transportation make the town a good base for exploring the area.