Many homes in Valiky Ustyug have no running water. In winter, women wash their clothes by cutting a hole in the ice. The situation used to be much worse. In 1998 the Russian economy nearly collapsed and unemployment in Valiky Ustyug reached record levels. In a desperate bid to save the town, it was decided to make it the official home of Grandfather Frost. Since then, they have been inundated with visitors. His fame has spread as far afield as Australia and he now receives over 100,000 letters every year from children. Beautiful 'snow maidens' assist him in his important work, answering his mail and ushering in children to meet him. However, when his work is done, he enjoys nothing more than relaxing in his local steam bath. A heart-warming tale perfect for Christmas.

Produced by ABC Australia