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Famous for its reflection of Mt. Fuji with the most famous being the "Diamond Fuji", where the sunrise shines at the peak so the mountain and its reflection create a sparkling diamond. The Diamond Fuji can only be seen around April 20 and August 20 (roughly visible for a week before and after these dates) from 06:00-06:15. 4-km path around the lake, good for walking. Can rent a bike. Lots of room for picnic. Camping is available. Take bus from platform 3 at Fujinomiya station, about one hour - buses only leave about once every 2 hours. Some buses from Tokyo station will also go to Kyukamura Fuji (via Fujinomiya station), which is right at the lake.
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Awesome waterfalls from the water running down from Mt. Fuji. Take the bus from Fujinomiya station at platform 3 to Shiraito no Taki bus stop. It takes about 30 minutes. Plenty of souvenir shops and vendors. There is a path that takes you to the scenic Shiraito Natural Park (白糸自然公園). Shiraito means "white threads".
Walk straight north from station, past 7-Eleven and turn left at the stoplight called "Chuo-cho". Walk a few blocks downhill and you will see the big red torii gate on your right.