Lake Atitlan is sits in a volcanic crater in southwestern Guatemala. Several interesting towns surround the lake and are easily accessible by water taxi. We stayed in Panajachel, one of the larger towns, at the Casa Colonial Hotel. I recommend visiting Santa Cruz la Laguna, one of the smaller towns — take a tuk tuk to the top of the hill, and eat at Cafe Sabor Cruceno overlooking the lake. San Pedro la Laguna is also worth visiting and has some cool restaurants and bars.