Sun Moon Lake is encompassed by mountains in the heart of Taiwan. Maybe its only real claim to fame is that Taiwan does not have any real lakes. This massive lake is a huge tourist draw, which, unfortunately, can take away from the experience. One can easily rent bikes and follow the trails around the lake. There are also many boats which litter the lake with people.
Swimming in the lake is prohibited except for once a year in the famous Sun Moon Lake swim. There is a ropeway, many boardwalks, and museums. Tribal enthusiasts will also welcome the many references to the local culture. You can also find many temples, each for different ailments or problems you are looking to remedy.
There are many busses from Taizhong that take you to Sun Moon Lake.
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