Licán Ray is a Chilean town and resort area , located on the north shore of Calafquén Lake , 27 kilometres from the town of Villarrica , within the commune of Villarrica , Cautín Province , Araucanía Region . It is a busy tourist centre with a population of 7,200 ( measured in the 2002 census and updated in 2012 ) . The town 's name comes from Mapudungun , the language of Chile 's indigenous Mapuche people , and means “ Stone Flower ” . The name can be written in different ways , such as Lican Ray , Licanray or Licán-Ray . Legend has it that Licán Ray , or “ Stone Flower ” in Mapudungun , was the name of the daughter of the powerful Cacique Carilef . Licán Ray fell in love with a Spanish sailor and the two fled from the fury of her father and community to one of the islands in the Calafquén Lake . They hid on the island for days until cold weather forced them to make a fire , which betrayed their location and forced them to escape to a more distant island . Every time they made a fire to cope with the cold , however , their persecutors found them and they had to sail to another of the 11 islands , until eventually the persecutors lost their trail . The place was then named of Licán Ray in the daughter 's memory . The town has no official foundation date , though it is popularly believed that activity began on this shore in the 1930s and it was registered in the property records of the city of Valdivia on February 15 , 1944 . In 1942 , the government loaned some land to the State Train Company , which harvested oak wood to use as railroad ties . The activities of this company brought some life to the town , providing transportation across the lake in the ship it used to transport its products and materials . By 1948 , having used up the nearby reserves of oak , the company left the town . Although a second , private company came to replace it and exploit the wood of the area , it only lasted until 1952 . After this , the economy of the town decayed . Plans to build a dam almost left the town 14 metres underwater but the decision was changed after the 1960 Valdivia earthquake . Instead , the Pullinque hydropower plant was built in 1962 in Pullinque Lake . In 1966 , the government sold or gave away to build houses and tourist accommodation in order to improve the local economy and develop the area . In 1990 , the road that connects Villarrica with Licán Ray was finally tarmacked , giving an extra push to the local tourism industry
1960 Valdivia earthquake
1960 Valdivia earthquake
Licán Ray