Come stay at the Waterstreet Hotel and take your place in history. Situated in a secluded waterfront community, the Water Street Hotel combines the old-world charm of historic downtown Port Townsend with a panoramic view of Puget Sound, Mount Baker, the Cascade Mountains and the majestic Olympic Mountains. Yet, it's within walking distance of downtown shops, restaurants and the Keystone Ferry. The Waterstreet Hotel occupies the 2nd and 3rd floor of the N.D. Hill Building. Pacific Traditions, a gift gallery located in the lobby of the Hotel offers various art forms of Northwest artisans.