Focus: Madison a bright future built upon a well-preserved past.

• Position: Regional Report Southeast

"We have the historic downtown Madison--quaint, nice eateries, unique shopping experiences," says Connie Combs, executive vice president of the Madison Area Chamber of Commerce. "Then you travel to Madison's hilltop, which is commercialized with retail and fast-food restaurants." Madison's "two-level" topography, Combs says, allows the city to offer the best of both worlds--modern amenities and a historic feel.

Generations ago, Madison was a hub of commerce, mills, taverns and hotels that benefited from heavy river traffic and the first rail line heading north from the river. Through the years, business and development moved north, up the hill and beyond, leaving behind a quiet river town.

The rest of America was tearing down and modernizing, clearing huge lots for shopping centers, building highways, and often overpopulating its urban areas. As it turns out, being left behind has been an asset for today's Madison, which looks much the same as it did at the turn of the last century and has become a tourist haven.

The city offers a wide array of architectural styles, charming overnight accommodations and a sense of stepping back into history unmatched in the rest of the Midwest. Indeed, the entire 133-block downtown area is listed in the National Register of Historic Places and is the largest such district in the state. During his travels, Charles Kuralt described Madison as "the Princess of the Ohio." In 1998, The Ladies' Home Journal identified Madison as the Midwest's "Prettiest Small Town."

The city stands as a living museum of the early life of the region. In 2000, the National Trust for Historic Preservation designated Madison as one of 12 national "Distinctive Destinations," embodying all the qualities that Americans seek in a hometown. State Road 56, passing through Madison's downtown, has been designated as a leg of the national Ohio River Scenic Byway.

"Tourism is very important to Jefferson County, being in the top three behind industry and farming," says Linda Lytle, executive director of the Madison Area Convention & Visitors Bureau. "Over 300,000 visitors came to our county in 2001, with a huge economic impact."

Randy Johann, executive director of the Madison-Jefferson County Industrial Development Corp. (MIDCOR), recites the economic-development pitch that has helped sell the area to industry: "Our community is conveniently located among the three metropolitan areas of Louisville, Cincinnati and Indianapolis, and within one...