Bellingham, Washington, is a bit larger than the small towns I normally focus on, at over 75,000 population, but it has retained the small town flavor. It also has a number of factors that are inviting for those who want to live in such a town: lots of water: lakes, ocean nearby. Also a great college and arts and entertainment in abundance. Then there is also the beauty of the northwest setting, with forests and meadows in the richest greens. It is an abundantly pleasant place to be, and is not too far from the Canadian border.
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