Tokaanu is one of a number of small lakeside settlements around Lake Taupo, catering for both permanent residents and those with holiday accommodation. It is a 5 minute drive from Turangi, the largest town at the southern end of the lake. Tokaanu has a long association with tourism. In the late 1800s and early 1900s tourists travelling the Grand Tourist Route from Wanganui to Tauranga arrived by stage coach from Waiouru, stayed the night in the Tokaanu Hotel then departed from the historic Tokaanu wharf by steam launch for Taupo at the northern end of the lake.

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