Guanajuato

Founded in 1559, Guanajuato (gwah-nah-whah-toh) soon became a fabulously rich town, with world-famous mines (such as La Valenciana, Mineral de Cata, and Mineral de Rayas) that earned their owners titles of nobility. Along with Zacatecas and San Luis Potosí, Guanajuato was one of Mexico's most important mining cities. From the 16th through the 18th centuries, the mines in these towns produced a third of all the silver in the world, and Guanajuato bloomed with elaborate churches and mansions.

Still, on the surface Guanajuato seems like an old Spanish city dumped into a Mexican highland valley. It's one of Mexico's hidden gems, explored by relatively few foreign tourists, but popular with locals. Picturesque and laden with atmosphere, Guanajuato should be high on your list of places to visit.

San Miguel de Allende

San Miguel de Allende mixes the best aspects of small-town life with the cosmopolitan pleasures of a big city. It is the smallest of the cities covered here and perhaps the most relaxed, but it offers such a variety of restaurants, shops, and galleries that urbanites find themselves quite at home. Most of the buildings in the central part of the town date from the colonial era or the 19th century; the law requires newer buildings to conform to existing architecture, and the town has gone to some lengths to retain its cobblestone streets.

A notable aspect of San Migueleña society is the number of festivals it celebrates. In a country that needs only the barest of excuses to hold a fiesta, it is known far and wide for them. Most of these celebrations are of a religious character and are meant to combine social activity with religious expression.