The steep hillsides rising on all sides of the lake basin contain many of Kandy's best guesthouses and the city's quietest neighbourhoods. Walking up from the lake — any direction uphill — leads into streets lined with colonial-era bungalows, small Buddhist temples, and guesthouses with views across the city. The Udawattakele Forest Reserve occupies the ridge directly above the Temple of the Tooth.
The hillside residential areas north and east of the lake are pleasant to wander without any specific destination. The streets are too steep for tuk-tuks in places, and walking is often faster. This is where Helga's Folly is located — on a hillside above the main road — and several of the best-value guesthouses in the city.