No, it's not a mirage!

The magical town is called Huacachina, and it can be found not only on adventurers' bucket lists, but also in a barren desert in Peru.

Visitors can visit the surreal settlement and the 96 residents who thrive on running small businesses on their greatest resource; sand.

The lake is naturally formed, but there is a legend that a young princess was bathing when she was discovered by a hunter and fled, leaving behind a pool of water. Her flowing cloak was said to have created the surrounding sand dunes. 

Now, descendents of the Inca people make their living by hosting guests coming from afar to climb to the top of a wind-sculptured sand dune and watch the sunset illuminate the golden landscape, before sailing down the slopes on rented sandboards or dune buggies.

Fear not if you have visions of stumbling around lost in the desert, with a few droplets of water left in your flask. 

The paradise Huacachina is situated a handy 4km from the southern city of Ica, a former Spanish colonial town located on the borders of the desert.

When you arrive at the 'Oasis of America,' one of the last oasis' in North and South America, you are greeted by the sights of rustic hotels, quaint shops and even an oasis library, surrounding the blue lagoon.

(dailymail.co.uk)