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The market town of Otavalo is set in beautiful countryside, and the drive from Quito to the town, taking about 1.5 hours, passes the snow-capped Cayambe volcano and San Pablo lake. This is an area where many flowers are grown, especially roses, and a there are many plantations on the route.

The town of Otavalo is not particularly attractive in terms of its architecture, but it has the most important market in all of Ecuador, with a giant Saturday market selling crafts, as well as animals and agricultural produce. On other days, there is a smaller crafts market.

Close to Otavalo is the crater-lake of Cuicocha, a beautiful lake in an extinct volcanic crater. There is a path around the lake which can be followed, and boat rides on the lake are also possible.

There are also several towns producing high quality crafts nearby.