The highway skirts the southwestern edge of the lake, entering the city of Rotorua and continuing south through the Rotorua-Taupō thermal area to the upper reaches of the Waikato River.

It runs just south of the prominent Mount Tauhara then passes through the small settlement of Opepe, which is at the intersection of two major pre-European walking tracks (Taupō-Napier and Urewera-Tokaanu).

Leaving the Volcanic Plateau, it follows the Waipunga River, the first section being the Runanga Deviation, which opened in 1972, replacing the last long stretch of narrow unsealed road.

The highway next ascends to cross the 708-metre Titiokura Saddle, the site of a proposed electricity generating wind farm, before passing through Te Pohue.

The earthquake raised the land and altered the course of the Esk River; the course of the highway was changed to follow suit.