Wai-O-Tapu is known for its unique geothermal activity, which includes geysers, hot springs, mud pools, and colorful mineral formations. The area is home to the famous Champagne Pool, which is a hot spring that is around 65 meters in diameter and features a bright orange and yellow edge due to the presence of mineral deposits.

Visitors to Wai-O-Tapu can take a walk around the area's geothermal attractions, including the Devil's Bath, a bright green hot pool, and the Lady Knox Geyser, which erupts daily at 10:15 am.

The geothermal activity in Wai-O-Tapu is caused by the Rotorua caldera, which is a large volcanic crater that was formed by a massive eruption around 240,000 years ago. The heat from the volcano creates the geothermal activity that is visible in the area today.