Queenstown is a year-round alpine resort nestled in a magnificent setting amid steep mountain ranges and pockets of native bush with the jagged peaks of the Remarkables Range rising from the lake. The town is compact enough to travel around on foot and features a great range of restaurants, bars and boutique stores. The lake was created by glacial action thousands of years ago and a mysterious phenomenon causes the lake to vary several inches in depth every few minutes, giving credence to a Maori legend of an ancient Taniwha (demon) still breathing beneath the surface.