Huacachina is built around a small natural lake in the desert. Called the "oasis of America," it serves as a resort for local families from the nearby city of Ica, and increasingly as an attraction for tourists drawn by the sports of sandboarding and taking dune buggy rides on sand dunes that stretch several hundred feet high. The oasis features on the back of the 50 Nuevo Sol note.
Legend holds that the lagoon was created when a beautiful native princess was apprehended at her bath by a young hunter. She fled, leaving the pool of water she had been bathing in to become the lagoon. The folds of her mantle, streaming behind her as she ran, became the surrounding sand dunes. And the woman herself is rumored to still live in the oasis as a mermaid.