At Lago Llanquihue’s east end, 45 kilometers from Puerto Varas , the shoreline village of Ensenada lies midway between the symmetrical cone of 2,660-meter Volcán Osorno , to the northeast, and the serrated caldera of 2,015-meter Volcán Calbuco, to the southwest. Most services are on or near the junction with the northbound road to Las Cascadas  and Puerto Octay .
Just north of the Las Cascadas  junction, Hotel Ensenada (tel. 065/212028, www.hotelensenada.cl , US$40–75 pp with half board) is a century-old classic that oozes character out of the woodwork—all the rooms are spacious, even the 3rd-floor rooms with shared baths, and museum pieces fill the common areas. It’s closed April–September.
In a class of its own, built by Seattle tech entrepreneur Michael Darland, the punning Yan Kee Way Lodge is an over-the-top luxury resort with whimsical (even kitschy) decor targeting big-bucks travelers for expedition holidays and/or fly-fishing (considerably more expensive). Accommodations include regular hotel rooms and two-unit bungalows (which share a wall). The dining room and elaborate kitchen at its Latitude 42 draw gourmets from around the country. For more information, contact Southern Chile Expeditions (Casilla 149, Puerto Varas, tel. 065/212030, fax 065/212031, www.southernchilexp.com ).
From Ensenada, a narrow gravel road follows the eastern lakeshore for 22 kilometers to Las Cascadas , where it becomes a paved road to Puerto Octay . There is no public transportation on this route, but there are four buses daily from Las Cascadas  to Puerto Octay .