Tahoe City is well placed for excursions around the lake and into the Sierra. Drive the West Shore for the Emerald Bay overlook (one of the most photographed views in California). Truckee, 14 miles north, has the historic downtown and Donner Memorial State Park, where the Donner Party were trapped in the winter of 1846. Squaw Valley/Palisades Tahoe is just up the road for summer hikes from the aerial tram. The full 72-mile lake circuit is a long but spectacular day's drive.