Even though my hometown is a few kilometers upriver, I now live and work in Krems, Lower Austria (Wachau)
and have to nominate it for my choice.
It is relatively small, about 23,000 inhabitants and one of the oldest towns in Austria, over a 1000 years old. Traditions are alive and well here in Krems, yet it is also modern and quirky because of two international universities and countless international companies, not to mention the many visitors from all around the world, and our diverse population.
The center of town is lovingly restored, a true beauty, and continuing its proud tradition as a trade town, is chock full of stores.
Every Friday and Saturday all the farmers come from the outlying villages to sell their produce and flowers on the two farmers markets right in town.
The Wachau region is known for its high quality products and culinary delights, it is pure joy to do the food shopping here.
Krems also boasts an excellent infrastructure: 5 municipal bus lines, and Postbusses (rural) too many to count, the Wachau Bahn, regional train to the West, and to St. Pölten and of course, Vienna (1hr) away. Not to mention the ships. The district hospital, schools, academies, whatever your heart desires.
Culturally Krems is nearly unsurpassed, the cup runneth over here ;-)) Music, museums, exhibits, two movie theaters, every day the listings take up pages.
All this, nestled in the vineyards along the Danube river in one of the most beautiful riverscapes of the world, framed by nearby castles and abbeys.
And last but not least: we have a wonderful climate, the Wachau is known for its almost mediterranian micro-climate. And of course, the wine flows freely :-))
http://www.krems.gv.at/system/web/zusatzseite.aspx?menuonr=218454324&detailonr=186158735