Here's a hint: nearby is Clyro, where Kilvert the Diarist served as curate and described this beautiful area in loving detail. Doesn't ring any bells? How about this then... every year for 10 days in the early summer, 80,000 people from all over the English-speaking world descend upon Hay for a carnival celebration known as the Hay Festival, swamping the tiny town of 1,500 inhabitants and 39 bookstores.

That's right. Literature buffs, get your annotated copies of classics out into the open. No-one here will scoff. For Hay-on-Wye, also known as the Town of Books, lays proud claim to being the largest 'used and antiquarian' bookshop in the world.

The guest list for the 2005 festival reads like a Who's Who in the world of contemporary literature. Those lucky enough to have been there would have been treated to readings, talks, and book signings by Ian McEwan, Alexander McCall Smith, Kazuo Ishiguro, Terry Pratchett, Garth Nix, Anne Fine, Stephen Fry and Sue Townsend, to name but a few.

Not interested in literature? Catch a concert or two -- they range from classical (the Alberni Quartet performed in the local chapel) to rock (Elvis Costello and The Imposters this year). Or join a workshop for dance (Cuban conga, anyone?). And if the kids complain, plunk them down to watch Disney short films or sign them up for a Japanese animé workshop. Or just relax and enjoy the wine tasting.

If you can't make it to the festival, Hay still offers plenty of activities, especially in the summertime, when the intrepid can go climbing up or abseiling down the Black Mountains, or brave the River Wye by white water rafting, kayaking, or canoeing. There's a myriad of trails for mountain bikers and hikers, and a wealth of galleries and craft shops to tempt the more artistically-minded with sculptures, stone-carvings, silk-paintings and the like.

But Andy and I had come in the autumnal calm of September for the books and the books alone. Our objective was clear and simple. We were there to root out affordable literary treasures buried among the many quality, second-hand, antiquarian bookshops that line the maze of Hay's narrow streets.

We arrived late, having struggled through weekend traffic in London, so after a brief foray into a few bookstores already closing for the day, we followed the signposts to Llanigan about two miles away, where we spent the night at the delightful The Old Post Office Bed & Breakfast. A lovingly restored 17th century listed building, the house retains its charm and character, with a winding oak staircase that leads up to ensuite bedrooms complete with creaking oak floor-boards and exposed ceiling beams. A Georgian post-box hangs proudly by the front door, still in use.

The next morning, after a hearty vegetarian breakfast cooked by Linda, our quiet and gentle hostess, we set out with the local map as guide. The map lists 39 bookstores, with over a million books for sale in all conceivable subjects. Hay is really more a village than a town, with the genteel air of a cultivated and well-preserved (and well-read) old dame.

We started with Hay Castle which dates back to the 12th century and is picturesque in a decrepit, ruined sort of way, having been sacked on several occasions during the years of conflict between the Norman English and the Welsh. Thousands of books are housed within its crumbling walls. Yes, even the castle in this little town has been converted into a makeshift bookstore where the honour system holds sway. However, it looked bleak and abandoned when we visited. The quality of the books left much to be desired and the organization was haphazard, to say the least.

We fared much better at the next bookshops we visited, some of them specialist stores. I found vintage Noddy storybooks for my nieces at The Children's Bookshop, and Andy found a couple of esoteric Algebraic Geometry textbooks at the Hay Cinema Bookshop to delight his pure mathematician's heart. Murder and Mayhem stocks all the murder mysteries anyone could ever wish for, and Boz Books, which specializes in Dickens and 19th century authors, has many first editions and fine literary sets. Sadly, they were way over our budget. But late in the afternoon, not long before the shops closed for the day, we were blessed with an amazing find.