The small town of Paeroa is located in the Thames Valley in the north of the Waikato region. Sitting close to the popular holiday area, the Coromandel Peninsula, it receives more visitors than usual for a town of this size.
Paeroa is well known for the large Lemon & Paeroa drink bottle displayed on State Highway 2. L&P as it is known, is an iconic New Zealand lemonade drink that once used water from a mineral spring in this town. While this is not the case today, the town still identifies itself with this drink. The drinks slogan is "World Famous in New Zealand" and is a part of Kiwiana, which are a list of products that are closely identified as being from New Zealand. The drink is now owned by multi-national Coca Cola.