Kotor, Kotor Bay, fjord, Montenegro
Here the mountains go right into the water, with little towns clinging around, and fortresses for last resort, up the cliff-side, fully walled. There are palm trees below, and where it is flat, lovely walled areas and twisting streets. This is a World Heritage area: see whc.unesco.org/pg.cfm?cid=31&id_site=125.
Here is a summary of the town's history, and a fine photo gallery for Kotor at www.barakatravel.com/?action=galeria&galeriaId=68. Go to home page first at the dot com.
The Financial Times has an article including Budva, see issue April 26-27, 2008, at page 10 --A flawless pearl - for now, by James Owen. He notes that Budva was flattened in 1979 by an earthquake. The restorations are not evident - so well done that we thought they were original. This is different from Germany where the devastation from bombing was so extensive and covered so much, that the renovations and reconstructions look Botox.