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 :es:Centrales eléctricas de Chile|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 localtourism industry.
Places of interest and landmarks
The main attraction is the landscape of lakes, mountains, volcanoes and native forest.,
Calafquen Lake, located at 209 metres in altitude, has a surface of 120 km2 and contains 11 islands. The long and thin lake hosts many tourism activities, like fishing and watersports.
Península Natural Park, a 15.5 ha peninsula extending into the lake from the town of Licán Ray. It is maintain by the local Mapuche community and is a perfect spot to observe native woods of Arrayán, or Chilean myrtle, and Lingue.
Playa Grande, extending from the north base of the peninsula to the Malpun stream. The beach is covered in volcanic sand and is the starting point for many of the outdoors activities offered in the area.
Playa Chica, extending from the south base of the peninsula to the fisherman's cove. It is a starting point for sailing activities.
El Escorial, a petrified lava river left from the 1977 eruption of Villarrica Volcano. Today it is possible to walk along this stone river.
The Artisan Markets, Plaza de Armas and Plaza San Francisco, all located in the town. These are popular locations for tourists to appreciate local architecture, culture and customs.
The Promenade, located at the beginning of Playa Chica. This is lined with colourful boats, some of which can be rented by tourists to explore the lake or swim out in the waters.
