Wanaka rates as my favourite town in South Island. While less famous than Queenstown, it is smaller, more manageable, less pretentious and equally fun. Plenty to do, great places to eat and people are so friendly. Try the mountain biking tracks (and this from a non biker), drive up Matukittuki valley (some easy walks there also to break up the driving), adventure stuff galore etc. Stay for days / weeks / years.
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