Midway to Ensenada , on Llanquihue’s eastern shore, bucolic Las Cascadas sits precariously on a mudflow from looming Volcán Osorno ; its primary assets are its black-sand beaches and broad vistas of Osorno . Bike touring companies often follow this route south to the village of Ensenada , the gateway to Parque Nacional Vicente Pérez Rosales  and junction to Puerto Varas .
Where the pavement ends at the south end of town, forested Camping Las Cascadas (tel. 064/247177 message only, US$12 for up to five people) has shady sites near the lake. The only noncamping budget accommodation (it also serves meals) is friendly Hostería Irma (tel. 064/396227, US$6 pp with shared bath), one kilometer south of town toward Ensenada, which has a certain decrepit charm.
Buses from Puerto Octay  are more frequent than they used to be—four per day, at 11 a.m., noon, and 4 and 7 p.m.—instead of just one. If, as rumored for years, the pavement should finally reach Ensenada , there may be links farther south as well, but for the time being it’s another 22 kilometers that involves walking, hitching, or cycling (this is a popular mountain-bike route).