Nozawa Onsen has been touted as "possibly the best snow resort in all Japan." It is also a quaint little mountain village for the rest of the year too. One of the things of which the locals are incredibly proud are their onsen. The town is dotted with many free public onsen and most hotels have their own too. Of all these free onsen, the most famous is probably O-yu Onsen.
It is situated on the main drag—O-yu Dori—and the shape of this wooden bathhouse is a Nozawa icon. The wooden building is a beautiful sight as you approach and is the subject of many a visitor's photograph. Push through the narrow door at the front and you find yourself in a basic, rustic onsen. It smells strongly, though not unpleasantly, of sulfur. There are no showers, no free soap or amenities of any kind; just some cubby holes for your clothes and two baths of hot, natural spring water.
The baths are on the small side and during busy periods it is much like man soup (though there always seems to be room for just one more.) Douse yourself in water before you get in or be prepared for a lecture on onsen etiquette from a local. The first bath in O-yu is hot - almost too hot for an onsen dilettante like myself. The second one is ridiculous. I slipped a foot in to test the water and thought I was being cooked alive. Urged on by my sniggering bath-mates, I lowered myself in and shot out seconds later pink and in pain. How people can lounge in this one (balancing a towel on their heads and with a smile on their face) is beyond me.
A bath at one of Nozawa Onsen's soto-yu is a great experience. If you didn't have the foresight to stick a towel in your bag you can purchase a souvenir one at any of the little shops close by. O-yu is famous so if you find yourself there in one of the busy times, get the obligatory photo but head off to find a less crowded (and maybe less scalding) free bath. [Although the baths are free you can make a donation to help the town with the upkeep of this awesome resource.]