Perachori is the hill village just above Vathy, a steep three-kilometre climb (or short drive) that rewards with sweeping views over the harbour and the southern part of the island. It is the highest inhabited village on Ithaca, set among vineyards and olive groves.
A few tavernas in the village do classic Greek country food, and the small wineries around Perachori produce respectable local reds and whites. The ruined Old Perachori — a deserted medieval settlement nearby — can be visited on foot, with the church of Taxiarchis still standing among the abandoned houses.