Two hours northwest of London, the Cotswolds is a compact region of natural beauty and exquisite rural architecture. Once a center of wool production, the area now contains enchanting medieval villages set amid gently rolling hills. Diminutive cottages built of honey-colored stone surround squares lined with appealing shops and atmospheric pubs. During July and August and on weekends, the major towns become excessively crowded, but the back roads and lesser-known villages are still a delight.