Takayama (often called Hida-Takayama) is a beautifully preserved castle town deep in the mountains of Gifu Prefecture, sometimes called "Little Kyoto" for its Edo-period merchant streets and traditional atmosphere. It deserves the comparison — the old town is among the best-preserved in Japan.
The Sanmachi-suji district is the heart of it: three parallel streets of dark-wood merchant houses from the 17th and 18th centuries, now housing sake breweries, miso shops, craft galleries, and cafes. The Takayama Jin'ya, a remarkably intact Edo-period government office, is the only one of its kind left in Japan. The morning markets (asa-ichi) along the Miyagawa River and at Jinya-mae are a daily fixture — pickles, crafts, and mountain vegetables.
Takayama's food is outstanding. Hida beef rivals Kobe beef and is served everywhere — as sushi, grilled on skewers at street stalls, or in hot pot. Soba noodles, mitarashi dango, and the local sake from the Sanmachi breweries are all excellent.
The Takayama Festival, held in April and October, is one of Japan's most famous — elaborate floats (yatai) are paraded through the streets, some dating from the 17th century. The Festival Float Exhibition Hall displays several of these year-round, in the precincts of Sakurayama Hachiman-gū.
In summer, Takayama is a base for hiking into the surrounding mountains, including routes into the Hida highlands. The Shokawa Valley to the west, with its gassho-zukuri farmhouses (the steep thatched roofs designed to shed heavy snow), makes an outstanding day trip.
Takayama is about two and a half hours from Nagoya by limited express train, or accessible via Toyama on the Hokuriku Shinkansen line.