Kusatsu is an onsen town in Gumna Prefecture. Its a great place to visit and it looks like there are many other good places to see nearby. Unfortunately, we had bad weather on our trip and we only saw a small part of it.
The highlight for us was Saino Kawara Park. A small park right near the middle of town with great autumn scenery and one of the best onsens I have ever been in. Very large, busy open onsen with great water. No chance of photos :-(
There's also a nice gallery/shop in town right near the park.
Kusatsu also has a rather strange downtown thermal area.
Raised ducts carry the onsen water
To a kind of waterfall
There is some nice walking around this downtown area
We stayed at a very nice little Ryokan call Hinoki.
We drove in from the east and were quite disappointed with Gumna, though the area just to the east of Kusatsu looks nice. We left to the south and were treated to some great scenery. Also Karuizawa to the south looks like a good place for a food loving foreigner to visit.