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Taupo is much better than Rotorua. It's more relaxed, cheaper, more scenic and less touristy, but there is slightly less to do here. From the lake side you can just make out the Mt. Ruapehu and Mt. Tongariro that were used for Mordor in the Lord of the Rings Trilogy. Also, you could see Hobbiton from the bus on the way down from Rotorua.
Just outside of town are the Huka Falls on the Waikato River that flows out of Lake Taupo. The Waikato River is the biggest in New Zealand and along with the many power stations that line its route, it provides over 50% of the power for the North Island and 33% of New Zealand as a whole. Wee fact for you there. The walk wasn't too bad and the falls at the end of it were spectacular. There was so much water all trying to fit through this one little space! We had our lunch by the river and then walked back to town! Fajitas for tea in our busy hostel and then to the hot-tub! Off to Napier tomorrow, after Sheona's sky-dive!
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