Rotorua is located in the Bay of Plenty region of the North Island. The city is known for its geothermal activity — notably the Pohutu Geyser at Whakarewarewa — and hot mud pools. This thermal activity comes from the Rotorua caldera, on which the city lies. Fifty miles to the south, Taupo is also a center of volcanic and geothermal activity, and hot springs suitable for bathing are located at several places in the vicinity. Taupo stands at the outlet of Lake Taupo, New Zealand’s largest lake. A short distance north of town, the Waikato River flows over spectacular Huka Falls.