Located at an elevation of 5400 feet in the mountains of north central Arizona, the City of Prescott (population just under 40,000 in 2011), was the original territorial capital of the Arizona Territory. This old mining town and now popular active adult retirement community borders the Prescott National Forest to the south and west. Prescott and the nearby towns of Chino Valley and Prescott Valley form what is known locally as the Tri-City area.
Carrying the nickname, "Everybody’s Hometown", Prescott is home to the downtown Courthouse Plaza, famous Whiskey Row, World's Oldest Rodeo, Prescott Fine Arts Association, Sharlot Hall Museum, and the Phippen Art Museum. The State of Arizona has been officially designated Prescott as "Arizona's Christmas City". Prescott is home to several colleges including Yavapai, Prescott College, Emory-Riddle Aeronautical University, plus other specialty campuses.
The downtown's Courthouse Plaza, framed by towering elms, is the focal point for much of what goes on in this active tourist and retirement community. Activities include crafts fairs, antique shows and art shows. The photo of the Horned Toad reading at the Prescott Library is courtesy of Wikipedia and PDTillman. Here is more help with what it is like to retire in Arizona, including tax information. Prescott is number 3 on the Topretirements list of the 100 best places to retire.