At the south end of Lake Taupo is Turangi (pop. 4500), once a quiet little holiday resort, which has developed rapidly since construction began on the Tongariro hydroelectric scheme in 1964. Farmers and forestry workers have settled here as well as construction workers and technicians. Turangi has also become a center of the timber industry
Above all, however, the town has gained from tourism: it is a good base not only for exploring the surrounding area but also for excursions to Tongariro National Park.
On the way from Turangi to Tokaanu the pipelines of the Tongariro hydroelectric scheme can be seen on the hillside above the road. Under the scheme the Whanganui, the Tongariro and other rivers are linked by channels and underground tunnels. Before the water flows into Lake Taupo it drives the turbines of another power station. Since the water level of Lake Taupo can thus be controlled, the output of the eight hydroelectric stations on the Waikato River can be optimized. During the construction of this complex system, care was taken to ensure that the flow of water in the Tongariro River was maintained in order to avoid endangering its stocks of trout.
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