It is located on the north side of the Ranco lake , but the town of Futrono is not on the shore . Futrono ( from the Mapudungun : Futronhue , `` meaning place of smoke '' ) is city and commune in southern Chile administered by the Municipality of Futrono . It is located in Ranco Province in Los RÃ os Region , on the northwestern shores of Ranco Lake .