"Elkhart Lake has two faces and diverse opportunities," said Lola Roeh, general manager at the Osthoff Resort. "We offer adrenaline-producing activities and resort-type relaxation."

The centerpiece of the community is, of course, the lake, which was carved by glaciers and named by the Potowatomie Indians for its shape. Here it is possible to swim, fish, water-ski and pontoon. On Sundays, when a no-wake rule is enforced, the water is still astir with sailboats, canoes and kayaks. Visitors looking for land-based exercise can walk the four-mile footpath that encircles the lake.

The town was settled by German immigrants who found the terrain similar to that of their homeland and saw its potential for farming. In 1886, one of those immigrants, Otto Osthoff, built a resort that attracted wealthy families from Chicago, St. Louis and Milwaukee. These summer residents arrived with steamer trunks and were transported by horse and carriage to the hotel. Prohibition-era gangsters such as John Dillenger came for the gambling. It wasn't legal, but local officials turned a blind eye for many years.

In the 1950s, the resort was sold to become a theater camp. Later it was rebuilt to its original glory and reopened in 1995 as a four-star resort. Today it hosts such special events as jazz weekends and a holiday market each December with European vendors coming to sell their wares. As part of the festivities, children can have breakfast with Santa and make cookies with Mrs. Claus.

The Osthoff Resort also offers beauty and relaxation treatments at the Aspira Spa, and visitors can take French cooking lessons at L'Ecole de la Maison. Chef Scott Baker directs his pupils in creating a full lunch menu of Classic French Onion au Gratin, Tenderloin of Beef au Poivre and Crepes Suzettes. Other options include seafood, pastas and desserts.

Resorts account for much of the entertainment around the lake and in the village. Across the street from the Osthoff is the Siebkens Resort, operated by the great-granddaughters of a couple who left Germany in 1916 because of political unrest. In addition to offering comfortable suites and rooms, they also operate the Stop-Inn Tavern, which, according to Auto Week magazine, is one of the best bars on the racing circuit.

The third resort facing the lake is the Victorian Village, which has on its grounds a theater where college students produce plays and song-and-dance revues. Outside near the beach is a tiki bar that often features live music.

The passion for racing began here with road races in the 1950s. World War II had ended not long before, and automakers were catering to returning soldiers with stylish cars to rival the ones they had seen in Europe. One automobile enthusiast was Jim Kimberly, a Chicago resident who flew over the area and determined that Elkhart Lake had the perfect terrain for developing a circuit through town. He organized a group to conduct the races, and the first ones were run in 1951.

"Hay bales and snow fences were erected and fingers were crossed," said Tom Hoelfelder, a member of the Elkhart Lake Historic Race Circuits Preservation Society.

Just two years later the annual event was halted after a child at a racecourse in New York was killed and the sport became illegal. Elkhart Lake had the bug, however, and wanted to keep on racing. Clif Tufte, who owned a local sand and gravel company, figured out a way to make that happen. Business had fallen off, but his company owned lots of land. He proposed using it to build a closed-circuit track, and Road America was born.

Today visitors come from all over the world to see racing events and vintage car and motorcycle shows, but there's a lot more happening on any given day. Corporate groups, family reunions and other groups of at least six people can take part in driving lessons, paintballing, karting and geocaching. The courses are laid out to give participants maximum opportunity to see all of the grounds.

There's also a lot to do in and around Elkhart Lake that doesn't require so much adrenaline. A short drive away is the Wade House museum in Greenbush, established in 1844, which became a stagecoach inn in 1850. Today it's possible to visit the taproom where men drank liquor while women and children waited in an adjoining salon. People can also tour several bedrooms, one of which is maintained as it was when a wounded Civil War soldier came to recuperate.

Also on the grounds are a working sawmill and blacksmith shop where docents dressed in period clothes demonstrate how the work would have been done in the 19th century, and there are also opportunities for visitors to get involved. Hearthside dinners involve working together to produce a meal using only the equipment and utensils that would have been available during the house's heyday. In the "At Work-At Play" program, children work in the gardens and do chores around the property, then relax with a game of baseball played by 1860s rules. The Wesley Jung Carriage Museum features nearly 100 antique fire-fighting carriages, stagecoaches and more.

The Two Fish Gallery and Sculpture Garden in the village offers high-quality art from local artists. At the nearby Hennings Cheese Factory guests learn how cheese is made and can sample the wares at the end of the tour, and at Henschel's Indian Museum visitors can explore an archaeological dig. At Broughton Sheboygan Marsh Park and Tower, they can fish, kayak, bird-watch and climb the largest observation tower in Wisconsin.

The sleepy little town turns out not to be so quiet after all, but the 19th-century ambience prevails. That being the case, what better way to end a day than with an ice cream soda or an old-fashioned phosphate at Gessert's. The shop remains exactly as it was when it opened in the 1920s, and the delightful white-haired owner behind the counter has been working there since she was 13.

WHEN YOU GO

Where to stay: The Osthoff Resort: www.osthoff.com; Siebkens Resort: www.siebkens.com; Victorian Village Resort, www.vicvill.com.

I opted for the restored Victorian Jay Lee Inn, where owner Monica Lettow offers comfortable, elegantly appointed period rooms and delicious food (ask for the wild rice quiche!). The inn is within a short walk of the village and the resorts, and guests often include racecar drivers, who put an exciting spin on breakfast-table conversation: www.jayleeinn.com.

Where to eat: The resorts all offer excellent dining options. A short stroll away is the Paddock Club, whose specialties are trendier dishes. Tapas night on Tuesdays allows patrons to sample a medley of unusual flavors: www.paddockclubelkhartlake.com.

The Lake Street Cafe boasts a wine list of 600 varieties to complement bistro-style food: www.lakestreetcafe.com.

Gessert's ice cream parlor doesn't have a website but is located at 99 S. Lake St.

What to do: For kayak rental and other activities on the lake: www.ecologyoutfitters.com

Road America: www.roadamerica.com

Two Fish Gallery and Sculpture Garden: www.twofishgallery.net

Wade House: www.wadehouse.org

Hennings Cheese Factory: www.henningscheese.com

Henschel's Indian Museum: www.henschelsindianmuseumandtroutfarm.com

Broughton Sheboygan Marsh Park and Tower: www.threeguysandagrill.com

Image one: The Osthoff Resort in Elkhart Lake, Wis., recalls summer holidays as they would have been spent in the 1800s. Photo courtesy of Glenda Winders.

Image two: Motorcycle races are among the exciting activities at Road America in Elkhart Lake, Wis. Photo courtesy of Glenda Winders.

Image three: Workers at the Hennings Cheese Factory in Kiel, Wis., demonstrate how cheese curds are made. Photo courtesy of Glenda Winders.