Hay-on-Wye lies on the east bank of the River Wye and is within the Brecon Beacons National Park, just north of the Black Mountains. Hay is a destination for bibliophiles, with over thirty bookshops, many selling specialist and second-hand books and is famous for the Hay Festival.
The town is situated just within the Welsh side of the border with Herefordshire, England, which is defined by the Dulas Brook at this stretch. Where the brook joins the River Wye just to the north of the town, the border continues north along the river.
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