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The region around the resorts of Caviahue and Copahue is a provincial reserve, established principally to protect the country's northernmost stands of well-spaced araucaria woodland that grow on the slopes of the domed, shield volcano, Volcán Copahue (2953m), the summit of which marks the border with Chile.

CAVIAHUE is a small, spread-out town of tin-roofed houses set at altitude in a bowl of low hills, on the shores of Lago Caviahue , also known as Lago Agrio (Bitter Lake), due to its sulphurous waters. The peeled aridity of the slopes here is broken by groups of araucaria, which are reflected picturesquely in the lake whenever the sky is its usual clear diaphanous blue. When the wind is not up, the place gets pleasantly warm. Highly recommended are the walks to a series of exquisite waterfalls in the neighbourhood, especially the Siete Cascadas route along the Arroyo Agrio: this has entrancing scenes of cascades plunging over columned basalt rock, and flanked by prehistoric araucarias. The initial section of the route (approximately 45min) is well marked, and takes you past four or five falls, including the stunning Cabellera de la Virgen (25m) and up to the Cascada del Gigante (8m), set by a clump of ñire trees. To see all seven falls, it's best to go by horseback ($5-40). Northeast of Caviahue, 16km away and signposted 2km to the left of the RP27, is the Salto del Agrio , an impressive seventy-metre fall that plunges off a basalt terrace. Caviahue has some skiing in winter, but it's better for scenic cross-country options (16km of trails) than downhill (5km of pistes).

Tiny COPAHUE , whose name means "place of sulphur" or "place where you collect water" in Mapudungun, is 19km from Caviahue, further up the volcano's slopes and above the tree line. The Mapuche have long praised and sampled the health-giving qualities of its thermal springs and mineral mud baths, hyped in tourist brochures as being "the best in the world". Today's reality is that it's a depressing, huddled assemblage of overpriced 1960s hotels frequented by more than their fair share of hypochondriacs - a kind of "last resort" resort for those whose health has given way faster than their wallets - though the swirling clouds of steam rising from its pools and the amphitheatre setting gives the place some atmosphere. A $12-million investment in thermal under-street heating (the only system of its kind in the world) means the resort can remain open year-round. The central feature is the Complejo Termal (daily 7am-noon & 5-9pm), where you pay separately to try a multitude of different saunas, hydro-massage tanks, swimming baths and mud baths. You must pay for a doctor's consultation - which usually entails a wait of an hour or two - before trying any, however, and the treatments are at rip-off prices. Laguna Verde (cold) is free, but it's hardly appealing; the next cheapest deal is Laguna del Chancho ($5).

Between January and March, you can climb Volcán Copahue, which takes over seven hours (5hr outward climb; 2hr 30min return). The crater is interesting, since glacial ice often reaches right to the crater lake, despite the water being thermally heated to between 20°C and 70°C. This climb can also be done from Caviahue in a similar time. The tourist office in Caviahue should be able to recommend a guide: try Daniel Maniero, who has an office in the Complejo Termal itself (tel 02948/495000); he is highly qualified and charges $40 per person to go halfway in a 4WD followed by a two-hour climb to the top, or $35 to make the journey by horse.