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Cold Water Pit Hot Springs are located in the valley on the eastern side between the Seven Stars Mountain and Seven Shallows Mountain (Qigu Mountain). Originally a standard caldera, it was later eroded by natural forces and human cultivation, leaving only an inconspicuous basin-shaped contour. The main rock types are tuff breccia and hornblende andesite, and most of the surrounding rock near the spring source has undergone hydrothermal alteration, showing a clay-like appearance.

The spring water gushing out from underground at the Cold Water Pit has an approximate temperature of 40 degrees Celsius, significantly lower than other hot spring areas, hence its name. This is also the only sulfuric sulfate sedimentary deposit in Taiwan, and the spring water appears milky white, earning it the name "Milk Pool."

Cold Water Pit Hot Springs are indirectly heated by geothermal conduction, with two different water types: neutral bicarbonate springs and weakly acidic sulfate springs.

Nearby attractions, such as the Juzi Waterfall and the Dream Lake Ecological Protection Area, are also popular spots. In such a natural environment, visitors often encounter wild friends, including the long-legged red frog (Odorrana tormota), sharp-nosed red frog (Odorrana narino), the Swinhoe's frog with bird-like calls, and the warty-lump toad (Duttaphrynus stomaticus), along with various snakes and reptiles. For safety and out of respect for the environment, please avoid disturbing them.