South Lake Tahoe vacationers are on notice after several “too good to be true” scams involving fake vacation rental listings on Craigslist were rumbled. 6 South Lake Tahoe is the largest city around the lake, which is known for its crystal-clear blue water and mountain views. One vacation rental agent told of the tragic story involving a South African woman spending lavishly on her vacation in vain. You can search to see whether it is actually a real vacation rental,” Benedict said. South Lake Tahoe is on the southern shore of the beautiful lake, just east of the Nevada border, in El Dorado County.