Port Jervis, N.Y. (Michael Mohr) [enlarge photo]

Priced out of New York City by rising rents, many artists and shopkeepers are moving to this old railroad and canal hub on the Delaware River. "You can own a house with real character at a price that's unheard of downstate," says Mark Washburn, who opened an arts and crafts furniture store, Bungalow Antiques & Unusuals, with his partner, Billy Stephens, last year (80 Front St., 845/858-8021).

Cheap commercial real estate also attracted Gordon Graff and Debbie Raia. They started a gallery, UpFront Exhibition Space, four months ago to showcase the works of emerging artists and to host poetry and short-story readings (31 Jersey Ave., 845/856-2666, upfrontexhibitionspace.blogspot.com). The couple also owns Twenty Seven Gallery, an antiques store up the street (27 Front St., 845/856-2727). Visitors can stay at the 1880s Erie Hotel, which has nine single rooms (9 Jersey Ave., 845/858-4100, $70). The best dining option is Restaurant at 20 Front, housed in a neoclassical former bank. Chef Daniel Weber cooks American dishes like chorizo-stuffed pork chops and butternut squash risotto (20 Front St., 845/856-8955, twentyfront.com, pork chops $24).

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