Port Townsend is located on the Olympic Peninsula, nestled in a rain shadow created by the Olympic Mountain range. This small Victorian Seaport sits upon its own little peninsula called the Quimper Peninsula. Needless to say, there is water on 3 sides. The real estate market here is beginning to heat up again. Port Ludlow to the south about 15 miles is a little slower, but there are DEALS galore down there. Awesome retirement communities.