Taupo is located on the northeastern shore of Lake Taupo, New Zealand's largest lake, which is itself in the caldera of the Taupo Volcano. The Waikato River drains the lake and runs through the town, separating the CBD and the northern suburbs. The river flows over the spectacular Huka Falls, a short distance north of the town, Taupo is a centre of volcanic and geothermal activity, and hot springs suitable for bathing are located at several places in the vicinity. The volcanic Mount Tauhara lies six kilometres (4 mi) to the east.
Taupo is a tourist centre, particularly in the summer, as it offers panoramic views over the lake and to the volcanic mountains of Tongariro National Park to the south. It offers a number of tourist activities including sky diving, jet boating, paragliding, and bungy jumping.
New Zealand State Highway 43 (SH 43), also called the Forgotten World Highway, is a road that runs 148 km from Stratford in Taranaki to Taumarunui in the King Country. It contains the only unsealed portion of the New Zealand state highway network.
Taranaki is a region of the North Island of New Zealand that is dominated by its volcanic mountain, (Mount) Taranaki, also known as Mount Egmont. The volcano has formed a gently sloping semi-circular coastal plain on its western side and a wide plain of rich farm land in the east to connect it to the rest of the North Island.