Lexington’s Distillery District is a revitalized stretch of Manchester Street just west of downtown. Its old bourbon warehouses now hold distilleries, a brewery, a cidery, restaurants, a live-music venue and a boutique hotel. In September 2026, Time Out ranked it #40 among the 40 coolest neighborhoods in the world. It’s the only Kentucky neighborhood on the list.
I’ll admit I smiled when I saw this one. Lexington usually makes national lists for horses and hospitality, and now a neighborhood that sat empty for decades is on a global list alongside Los Angeles, Chicago and New York. If you’ve been curious about the Distillery District, or you’re wondering what it’s like to live nearby, here’s what I tell my buyers.
Why Did Time Out Name the Distillery District One of the World’s Coolest Neighborhoods?
Time Out builds its list from input from local experts around the world. Its editors score each neighborhood on food and drink, nightlife, independent businesses, liveability and community. Only four U.S. neighborhoods made the 2026 list. The other three were Chinatown in Los Angeles (#4), West Town in Chicago (#18) and the Financial District in New York City (#28). Time Out singled out Barrel House Distillery, The Manchester hotel and The Burl, and noted the district has been coming back to life since 2008.
What’s the History Behind the Distillery District?
Bourbon has been made on this land since shortly after the Civil War, when the Headley and Farra Company opened a distillery here. The James E. Pepper Distillery took over the site in 1879 and built six warehouses that could hold nearly 50,000 barrels. The distillery was abandoned during Prohibition. It came back under Schenley after 1933, made whiskey until 1962 and stored barrels until 1976. The property was sold in 1977, and the area sat largely vacant for years after that.
The turnaround started in 2008, when Barrel House Distilling Co. opened as Kentucky’s first craft distillery. Today the restored James E. Pepper Distillery is making bourbon on its original site again.
What Is There to Do in the Distillery District?
- Bourbon: James E. Pepper Distillery and Barrel House Distilling Co. are both on the Kentucky Bourbon Trail, so you can start the Trail right here in town.
- Beer and cider: Ethereal Brewing makes Belgian farmhouse and American craft beers. Wise Bird Cider is a family-run cidery.
- Music: The Burl is a live-music venue and retro arcade in a restored train depot.
- Food and drinks: The district has Granddam (an Appalachian dining hall), Lost Palms (a rooftop bar at The Manchester hotel), Elkhorn Tavern, Goodfellas Pizzeria, Crank & Boom ice cream and Brevede Coffee.
Tasting rooms and hours change, so check each business before you go. For more ideas, see my guide to Lexington tours and the bourbon section of my post on ways to enjoy spring in Lexington.
Can You Actually Live in the Distillery District?
Yes, but there aren’t many homes in the district itself yet. The first residential community there was Distillery Heights, a development of 34 two- and three-bedroom townhomes at the corner of Oliver Lewis Way and Manchester Street. Its first building opened in 2019.
Most of the district is still made up of businesses, so many people who love the area live nearby instead. That could be downtown, in one of the older neighborhoods close to the city center, or a little farther out where you get more space for your money. Our Lexington community page covers the city’s housing options. If you’re weighing city living against a quieter suburb, my Nicholasville vs. Lexington comparison is a good next read.
How Do You Get to the Distillery District Without Driving?
- Gatton Park on the Town Branch: a 12-acre downtown park at 795 Manchester Street, open daily from 6 a.m. to 10 p.m. It sits right at the edge of the district.
- Town Branch Trail: a walking and biking trail that runs along Manchester through the district. It’s part of a larger plan to connect downtown to the countryside with miles of trail.
- LexRide: a free downtown shuttle that connects downtown, the Distillery District and the Warehouse Block. In 2026 it runs Thursday through Saturday, 4 p.m. to midnight, from April 2 through October 31.
What Should Buyers Know Before Buying Near the Distillery District?
- Visit at different times. Walk the area on a Friday night and again on a weekday morning. Music venues and tasting rooms are part of the fun, but you’ll want to know what it sounds like from your front porch.
- Ask about parking. Event nights can fill the streets, so find out where a home’s parking is and how it’s assigned.
- Plan for change. This part of town is still growing. I’ll help you look into what’s planned on the lots around a home you’re considering, so a new building doesn’t surprise you after closing.
- Get your financing ready. Homes close to downtown can move quickly. Our Buyer’s Guide walks through getting pre-approved and making a strong offer.
Frequently Asked Questions About Lexington’s Distillery District
Where is the Distillery District in Lexington, KY?
The Distillery District runs along Manchester Street just west of downtown Lexington. Gatton Park on the Town Branch sits at its downtown edge.
What did Time Out say about Lexington’s Distillery District?
In September 2026, Time Out ranked Lexington’s Distillery District #40 on its list of the 40 coolest neighborhoods in the world. It named Barrel House Distillery, The Manchester hotel and The Burl as highlights.
Which distilleries are in the Distillery District?
James E. Pepper Distillery and Barrel House Distilling Co. are both in the district, and both are on the Kentucky Bourbon Trail.
Are there homes for sale in the Distillery District?
There are only a few. Distillery Heights, a community of 34 townhomes, was the first residential development in the district. Many buyers who love the area look at homes in downtown Lexington and the neighborhoods nearby.
Thinking About Living Close to the Action?
The Distillery District is one of my favorite stories in Lexington. A place that sat empty for decades is now getting noticed around the world, and it’s a fun reminder of how much this city has to offer. If you’d like to live near the district, or you just want to know what your money buys close to downtown, reach out or give me a call at (502) 639-9223. I’ll show you what’s out there.
Sources: Time Out, “These are officially the coolest neighborhoods in America” (Sept. 19, 2026) and “The 40 coolest neighbourhoods in the world in 2026” (Sept. 16, 2026); ExploreKYHistory (Kentucky Historical Society), “Lexington Historic Distillery District”; Kentucky Bourbon Trail; VisitLEX, Distillery District; Lane Report (July 2019); City of Lexington, Gatton Park on the Town Branch; Town Branch Trail; Lextran, LexRide.
