The hamlet of Katonah (1 of 3 hamlets in the Town of Bedford), which has turned into a bustling center of activity, lies south of its original location.  In the late 19th Century, the hamlet, with its then 50 houses, was moved to make way for the New York City watershed when the Muscoot Reservoir was built.

Katonah has a lovely collection of country establishments, everything from coffee shops and art galleries to gourmet food and old-fashioned hardware & department stores.  It is an experience in itself to wander the streets and enjoy this unique town; it's fun for the entire family.

This hamlet is also a cultural center, with both the Katonah Gallery, a nationally known art museum and the Caramoor Center for Music and the Arts, which hosts a famous summer music festival and other events.  Nearby is the John Jay Homestead, a historic place by itself but also the site of frequent cultural festivals.  The Bedford Road area of Katonah was designated a State and National Historical place in 1983, with much of the area designed by noted landscapers, G. S. and B. S. Olmstead.