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Kotel was an important economic and cultural centre in Bulgaria during the Renaissance. It is located in a picturesque hollow in the eastern parts of the Stara Planina Mountains. The town was founded in the 14th century by inhabitants of a nearby fortresses, demolished by the Ottoman Turks. It was named after the largest spring in the vicinity. During the 17th and 18th centuries Kotel became a rich craft centre. Today, the town is a famous resort with a many old-style houses, dating back to the Renaissance.