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I haven't seen this town for myself, so obviously can't go into detail about its features, but a few years ago I read about some study or survey that rated Morgantown, WV, as the overall best small city in the country.
Asheville is amazing, I love that place but it's more or less due to teh fact that it's sort of a fun little bohemian mountain town as opposed to a true Appalachian sort of ordeal. I guess it's kind of like the Austin of Appalachia in that it's a bit quirky and has a nice little music scene. Cumberland Maryland is also really charming and fun from a historical perspective. They have a really, really, really nice little downtown commercial district with tons of shops, restaurants, and walkable spaces. It's not just a straight stretch either, it stretches for several blocks in every dirrection with tons of nicely restored historical buildings, cobble stone and brick streets, fountains, sitting areas, etc. It really is a nice looking commercial district, I'll have to see if I can find any pictures of it. But it's worth a stop if anybody ever passes through Western Maryland.
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