Within hiking distance from Otavalo, Peguche makes a welcome break for those looking for some peace and quiet after a hard day's bargaining in Otavalo Market. The town is sleepier than it once was, as the train tracks have been abandoned since the late 1980s, but Peguche is friendly and welcoming despite its rather unkempt appearance.
The town is home to a nearby and sacred waterfall, along with a number of artisan stalls that line the path to the entrance. Here, vendors will try to persuade you to part with your cash before you head to Otavalo. A number of musicians also live in town whom you may see out in the open playing their pan pipes, accompanied by local dancers. The facilities in Peguche are limited to just a couple of hotels with adjacent restaurants and just one or two grocery stores in the center, so its advised that you stock up on anything important that you might need while in Otavalo.