Surrounded by the volcanic peaks of Imbabura, Cotacachi, and Mojanda, Otavalo is hiking, camping and fishing. Kayak on the San Pablo Lake, one of the biggest in Ecuador, or enjoy the beauty of the Peguche Waterfall. On Saturdays, visit the market, which takes up nearly one third of the town, to buy locally made crafts such as clothing, jewelry, and stone carvings.