Agios Nikolaos, the capital of the prefecture of Lassithi, is one of the most highly developed tourist towns in Greece. The main road axis of the island passes right outside the city limits , connecting it with Iraklion (66 km) to the west, Sitia to the east (70 km) and Ierapetra to the south (36 km). Agios Nikolaos is the administrative, communications, cultural and commercial center of the Prefecture, with approximately 8,500 citizens.

Agios Nikolaos, with over forty years of experience in the tourism industry, is an international and cosmopolitan resort that welcomes thousands of visitors annually.The most charming feature of Agios Nikolaos is its deep "Voulismeni" lake in the centre of the town. Legend suggests that Athena and Armetis bathed in its waters. This lake is connected to the sea by a straight channel, while its natural surroundings of red rock and trees attract the visitor magnetically.