According to Garden & Gun, which is evidently a real internet publication, it's at least one of the top 32.

The site has created a bracket of the 32 best small Southern towns in America, and will determine the winner - NCAA tournament style.  Kentucky has two representatives.  Bardstown, of course, is known for being the bourbon capital of the world.  Berea, just a few miles south of Lexington, is known for it's smalltown Southern charm, Berea College, and the Boone Tavern Hotel.  

Wanna vote for one of our two towns as the "Best Small Southern Town in America"? Click the link here to access the voting.

For the record, G&G's definition of a "small town" is a population of under 150,000.

 G&G Bracket