Mexico's Hidden Mountain Town

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Enough activity—mealtime beckons.

Where to Eat and Sleep

The top restaurant in town is El Ciruelo (www.elciruelo.com.mx) on the Avenida Zaragosa, which dazzles with both its imaginative, nouvelle Mexican fare and vistas of the Tepozteco mountains from beneath a domed roof. Specialties include enchiladas de pato en pipian verde (duck enchiladas in a green nut sauce), rollos de pechuga con huitlacoche (chicken breast with a mushroom-like corn fungus), and, for the less adventurous, a satisfying range of pasta dishes. The restaurant has a full bar and a selection of wine and Mexican beers. Average cost of a meal for two with drinks? About $25.

For an even lower price, Tere, at No. 29 Matamoros, serves down-home comestibles such as chiles rellenos (poblano chiles filled with meat or cheese) and enchiladas con mole rojo (red mole enchiladas) in what feels like a neighborhood kitchen. The host may sit down at a table near you to enjoy her lunch or call out the window to patrons in the street below. Have a Nochebuena or Dos Equis with your comida.

A range of places to stay await the visitor. At the top end is La Posada del Tepozteco (www.posadadeltepozteco.com), a 19-room former private home. It features a spectacular location, a heated swimming pool, paddle tennis and billiards, Internet access, numerous terraces with views of the town—and a bar/restaurant with the best margaritas and guacamole in the region. There is an on-site temazcal, and massages can be arranged. Rates vary with the season and room size, from $125 to $430 including taxes and a complimentary full breakfast.

At the other end of the scale is the peaceful and unassuming, four-room Posada Las Golondrinas. The inn, a 15-minute cab ride from the center of Tepoztlan, features a magnificent if small garden, tiny swimming pool, and an honor-system bar. Rooms are decorated with the artwork of owner and innkeeper Marisol Fernandez. The daily rate for a double room is $135, with spectacular breakfasts included.

Staying On

Those contemplating a longer stay may wish to contact a real estate agent. An increasing number of Americans are getting second homes here. According to agent Martha Ketchum, expect to spend $400,000 to $500,000 for a four-room house with pool and hookups for satellite TV and high-speed Internet. Short-term rentals can be easily found listed on local message boards.

Fiestas are nearly continuous in Tepoztlan—especially since each barrio, or neighborhood, celebrates both major holidays and its own saint's days. In fact, there are at least 30 major and minor celebrations, some stretching for several days. And nearly all are attended chiefly by locals, with few shorts-wearing gringos on hand. And, yes, while you won't find swim-up bars serving frozen margaritas or large pulsating nightclubs, you will find out why the lucky few who have discovered Tepoz keep coming back year after year.

Where to go for more about the individuals and businesses in this article:
Activities: Cocinar Mexicano (www.cocinarmexicano.com), Under the Volcano (www.underthevolcano.org)

Dining: El Ciruelo (www.elciruelo.com.mx)

Lodging: La Posada del Tepozteco (www.posadadeltepozteco.com), Posada Las Golondrinas (http://homepage.mac.com/marisolfernandez/LasGolondrinas/Menu12.html)
Real estate agent: Martha Ketchum (e-mail: marketchum@yahoo.com)

Green is books editor for BusinessWeek .