Queenstown is a resort town in Otago in the south-west of New Zealand's South Island. It is built around an inlet called ''Queenstown Bay'' on Lake Wakatipu, a long thin Z-shaped lake formed by glacial processes, and has spectacular views of nearby mountains. It is now known for its commerce-oriented tourism, especially adventure and ski tourism. It is popular with young international and New Zealand travellers alike. The town is the largest centre in Central Otago, and the third largest in Otago. According to the 2006 census, the usually resident population of the Queenstown urban area (including Fernhill, Frankton and Kelvin Heights) is 10,416, an increase of 22.1% since 2001. Its neighbouring towns include Arrowtown, Wanaka, Alexandra, and Cromwell. The nearest cities are Dunedin and Invercargill.