In the late nineteenth century the town was nor much more than a dusty stopover for travellers in the North Island interior.
There was hotel accommodation and spa bathing, bur little more.
Taupo was not a developing or prospering rural region: it had few farmers to serve .
Yet one of the first Europeans to visit the district, the naturalist Ernst Dieffenbach, glimpsed its potential as early as 1841.
Bewitched by 'the scenery of Taupo lake, the whole character of the landscape, the freshness and peculiarity of the vegetation, the white smoke rising around' he saw a beauty 'well calculated to attract visitors from all parts of the world'.
Two things have largely conspired to bring Dieffenbach's vision to pass: trout and trustworthy roads.
Brown and then Californian rainbow trout were introduced to the lake towards the end of the nineteenth century.
With little competition and an abundance of food the fish grew to phenomenal size.
The trout of Taupo, a story in themselves, became legend among the world's anglers.
Getting to them, however, was another matter.
The main trunk railway between Auckland and Wellington ducked the Taupo district.
Storms of dust from the pumice roads suffocated travellers in summer; and deep and sandy mud bogged coaches and cars in winter.
Today the road journey to Taupo is comfortable and far less desolate. Farms, forests and timber towns are strung along the route.
New Zealand's postwar affluence has confirmed the district's resort character.
Summer homes dot the lakeshore, and settlement after settlement has grown. Luxury .motels and hotels have opened their doors, not only to the world's anglers, but also to lovers of summer water sports and to skiers on Ruapehu's slopes to the south in winter.
The shore of Taupo, halfway between Auckland and Wellington on Highway I, with warm pools and soft beds for the weary, still makes a logical stopover for the traveler through the North Island interior.
For all the change, visitors first glimpsing the lake can still share the astonishment and delight felt by the famished and footsore explorers of the nineteenth century when, after days spent travelling through desolate wilderness, they found streamers of steam and a great inland sea brimming to the farthest horizon.