The pretty village of Coxwold is situated where the Vale of York begins to rise up to the Hambleton Hills.

Rising steeply, the wide main street is flanked on either side by grey stone houses. On the hill top stands St Michael's Church with its distinctive octagonal tower. This present church was built in the early 15th century but evidence suggests there was a centre of Christian worship here way back in Saxon times.

One of Coxwold's 'famous names' is buried in the churchyard. The village's witty and eccentric parson, Laurence Sterne (pictured), lived much of his life at Shandy Hall just past the church. It was here that his well-known books Tristram Shandy and the unfinished A Sentimental Journey were written. Sterne died and was buried in London in 1768, but in 1969 the burial ground was sold for development and the Laurence Sterne Trust brought his remains and gravestone back to his beloved Coxwold.

Well-known in the village is Arthur Watter, who has lived here for 21 years. Arthur visits the church every day. He said: "I'm on the parochial church council and one of my jobs is to unlock the church every morning. It's a rather unusual church, both inside and out, and well worth a visit."

As well as being the church key-holder, Arthur and his wife, Val, run the village shop and post office.

"Coming here was pure luck, really. I come from a farming background and we fancied a complete change. We just happened to spot this place advertised in one of the local papers. Best move we ever made!"

The shop sells everything from balloons to barley-sugar, cat food to candles. It also does a nice line in smoked kippers. The shop here is also a hub of village life where people can chat to each other and exchange friendly gossip.

"Naturally the supermarkets have affected us a bit, but we still get a lot of local trade. Being on the alternative route to Sutton Bank means we also attract passing tourists.

"Traffic has increased considerably since we came. A lot of it is heavy stuff and, of course, the roads were not built for it. We enjoy living here though. It's a very friendly village. There is a WI and football, tennis and bowling clubs and various things go on at the village hall."

In addition to its beautiful setting, Coxwold has a lot going for it. There is a garage - with petrol pumps - a rarity now in most villages.

The popular Fauconberg Arms provides food and warm hospitality.

Although there is no longer a school here, the Old School House, which was once the home of the village schoolmaster, now serves appetising home-baked teas. There is also a pottery and a cabinet-making business.

Coxwold Potters is run by Peter and Jill Dick.

"We moved here in 1965," said Peter. "It was a derelict farm then and we camped out in the buildings while the restoration work was being done."

The inspiration for Coxwold Potters comes from the work of country potters over the centuries and many of the techniques employed are the same as those used by the old craftsmen.

Peter also gained experience from many parts of the world. "I first became interested during a visit to Mexico, but I actually began learning more about it in New Zealand and Australia.

"I also worked on pottery at a training centre in Nigeria. Since starting the business, we have had around 45 students from all over the world."

There was a pottery in Coxwold in the 15th or 16th century and another one in nearby Yearsley.

"The potter at Yearsley was William Wedgewood," explained Peter, "He was related to the Staffordshire Wedgewoods and was married in the church here in Coxwold."

Two enthusiastic young men, Geoffrey Gell and Jonathon Dixon, are the village cabinet makers.

Geoffrey said: "It was always a burning ambition to set up in business. There is quite a concentration of cabinet makers in the area and we were keen to establish our own designs. We use good quality hardwoods - oak, cherry, yew, maple, etc."

Geoffrey and his business partner, Jonathon, started their workshops and showroom 16 years ago in what used to be old farm buildings.

Their beautiful, finely-crafted furniture is a real credit to their hard work and perfectionism. As well as a wide range of furniture they also specialise in the manufacture of solid hardwood kitchens and office suites.

"Because of our geographic location, we use the unicorn as our trademark. Many of the local estate houses display the crest of the Wombwell family and the unicorn is part of it."

Newburgh Priory is a large and imposing house just out of the village, built on the site of an Augustinian Priory. For many years, this was the family seat of the Earls of Fauconberg.

In 1825, the property was inherited by Lord Fauconberg's granddaughter who married Sir George Wombwell.

Since then, Newburgh Priory has remained in the hands of the Wombwell family. The lake beside the priory is a haven for wildlife including mallard and coot. There is also a pair of mute swans which have nested here in recent years.

Perhaps the last word on Coxwold should go to Lawrence Sterne, who described it as a place where "good air, a quiet retreat and quiet reflections along with it... together do wonders".

Updated: 11:40 Wednesday, January 07, 2004