ON A RECENT SATURDAY NIGHT, James M. White took the stage at the Broken Spoke, his legendary country-and-western dance hall in Austin, to introduce the band. After doing so, he paused to praise the club’s favored beer, Lone Star. “We don’t have no Pierre water,” he added, taking a dig at the French sparkling water Perrier. The crowd—tattooed rockabilly types, shaggy students, couples in Wranglers—hooted in approval as the band launched into a Buck Owens medley.

Down the road, a stylish throng in front of Uchi restaurant sipped unfiltered sake while waiting for tables. Chef-owner Tyson Cole has bewitched Austin with culinary flights of fancy—think crisp yucca chips stacked with slivers of sugar-cured yellowtail.

This is Austin today: a sophisticated and increasingly urbane boomtown with a funky down-home foundation. (The town’s unofficial motto, “Keep Austin Weird,” was reworked as a glitzy charity-event slogan: “Keep Austin Fabulous.”) These two worlds might not always be comfortable with one another, but visitors are free to sample the best of both.

BUILD IT AND . . .
The Texas state capital is bustling. These days, construction cranes in the downtown area seem to outnumber buildings. In the suddenly hip 2nd Street retail district—a short walk from downtown—women in $200 jeans flit from boutique to boutique. A decade ago, the area was filled with low-slung warehouses and parking lots. Today you can park beneath a new angular city hall and browse for an Eames side chair while nibbling on a gelato from Paciugo (241 W. 2nd St.). (Try the black pepper and olive oil—seriously.)

WHERE THE TWAIN MEET
No other neighborhood better captures the blend of old Austin—boots and bands—and its new posh side—boutique hotels and small plates—than South Congress. This funky stretch of shops, restaurants, and rock and roll is just across Town Lake (now renamed Lady Bird Lake after the late, Texas-born first lady) from downtown.

The shopping here is stellar. Start at Yard Dog (1510 S. Congress Ave.), a gallery where original folk art can be picked up for as little as $50. Expect anything from portraits of bluesmen to densely layered landscapes made from scraps of vintage linoleum. Down the road, Tesoros offers unexpected and affordable artisanal tchotkes, such as a lobster figurine made from a recycled 7Up can ($6.50). Sustain your spending trip at Amy’s Ice Cream, where you can watch a Twix bar being mashed into your scoop of Mexican vanilla. To get more firepower, cross the street for an Iced Turbo at Jo’s Hot Coffee.

BOOTS AND SUCH
Even if you don’t plan to leave Texas with new cowboy duds, it’s worth dropping into Allens Boots (1522 S. Congress) to ogle the flashy footwear and Western shirts. (Boots made of stingray hide can be yours for $800.) For a twentysomething’s take on Texas chic, go to the too-cool-for-school Parts & Labour (1604 S. Congress), which focuses on Texas designers. Look for ironic T-shirts and gifts like a baby onesie that says “tiny little human.”

If you still have steam, you needn’t go far for some of Austin’s best music. The Continental Club supplies a lively mix of roadhouse rock and country. Pick up an Austin Chronicle to see if local greats—and Continental Club regulars—like Alejandro Escovedo, Dale Watson or James McMurtry are performing.

The Gallery, a relatively new spot upstairs, offers funk and jazz. A mobile barbecue stand out front occasionally feeds the last-call crowd. “I’ve been all around Texas and eaten a lot of dead animals,” said a cabbie who dropped by for a bite, “and they do it right.”

THE FUNDED SOPHISTICATE
For decades, intellectuals have flocked to Austin and the University of Texas. The cultural scene, while vibrant, was hardscrabble. Musicians, actors, dancers and writers survived on side jobs. A performance space one night could be a beer hall the next. But over the last few years, culture finally got its due. High-tech millionaires and wealthy retirees have begun donating their time, know-how and money to cultural institutions at an unprecedented rate, according to local leaders in the arts community.

As a result, Austin’s symphony, ballet and opera are set to move into a new home, the Long Center for the Performing Arts, in March. The Zachary Scott Theater has begun a $25-million fund-raising campaign to pay for a new 500-seat theater overlooking downtown. Nearby, the new Mexican American Cultural Center opened its doors last fall.

“There’s been a quantifiable change of temperature in the art scene, but also in the cultural scene,” says Annette DiMeo Carlozzi, a contemporary-art curator at the University of Texas’s Blanton Museum of Art. “In some ways, the city has grown up.”

The Blanton is at the forefront of this move. Its 124,000-square-foot exhibition space opened in April 2006; a new building and an elaborate plaza are going up next door. The facility joined a museum district that includes the Bob Bullock Texas State History Museum, the LBJ Library & Museum and the Harry Ransom Center, whose nationally recognized collection focuses on the arts and humanities.

SOUTH BY...
Culturally, Austin’s sprawling music scene—the city is home to both veteran Western Swing band Asleep at the Wheel and pop rockers Spoon—has enjoyed top billing for decades. It remains the city’s calling card, as in “Austin: Live Music Capital of the World.” The problem with Austin’s music? Well, there’s too much of it—or so the joke goes. That problem gets a lot worse, er, better, during South by Southwest, a riotous five-day music festival that takes place March 12–16 (sxsw.com). Between in-store appearances, day parties and after-hours gigs (never mind the official showcases), there’s an absurd amount of music to be heard. With a little effort you’ll find yourself a year or two ahead of the curve.

NATURAL AUSTIN
At its heart, Austin is an outdoor town. That’s no surprise, considering it enjoys an average 300 days of sunshine annually. In spring, temperatures hover in the mid-70s, and bluebonnets, the state flower, paint highway embankments across central Texas.

It’s not just weather that draws people outside. Austin has set aside big chunks of prime real estate for recreation, from Lady Bird Lake’s 10-mile jogging trail to a Frisbee golf course with views of the 302-foot-tall Texas State Capitol. Zilker Park offers an in-city hike called the Barton Creek Green Belt, which starts at what could be the best swimmin’ hole in America: Barton Springs Pool (2101 Barton Springs Rd.; $3 admission). Surrounded by century-old pecan trees, this 1,000-foot-long spring-fed pool has lured swimmers since before Spanish friars set up three missions nearby in 1730.

GET AWAY FOR A DAY
The city’s unbridled expansion—for good and bad—can be seen firsthand on the road out to the Lake Austin Spa Resort. A winding descent through the Texas Hill Country gives way to the flattened expanse of Walgreens parking lots and drive-through ATMs. After a few miles,
a turnoff leads to an elaborate, 4,600-acre master-planned community of freshly constructed mini-mansions, expansive four-way stops and miles of undulating sidewalks. Even before completion, the development already has three schools.

As Lake Travis pops into view, a discreet iron gate opens into the spa’s
19-acre lakefront grounds. A sign warns off snoopers, making customers feel like stars even before the real pampering begins. Sleeping over is expensive: The required three-night weekend stay starts at $1,705—per person (the rate does include a $290 spa “allowance” and all meals). However, a single treatment ($120 and up) can be stretched into a blissful daylong stay, since the $25 facility fee grants you access to the sauna, steam room, whirlpool and two pools.

Compare and contrast your two swimming options. Flanked by daybeds and cabanas, the outdoor pool is geared toward lounging. The heated lap pool is hidden in a cedar-walled barn with roll-up glass doors. Though the clientele is largely female, men won’t feel shortchanged: They get a specialized menu of treatments and a locker room with a flat-screen TV surrounded by sleep-inducing armchairs. Keep Austin fabulous, indeed.

STAY

RCI®-affiliated resorts in the Austin area include:

The Shores at Lake Travis, Lago Vista

Texas Timeshare in Lakeway, Austin

For more information, visit RCI.com or call
Weeks: 800-338-7777
Points: 877-968-7476

OTHER AUSTIN HOTELS

The Driskill
As the hotel scene heats up, this grande dame’s 189 guest rooms are slated for renovation. Reserve a suite in the
original 1886 building. 604 Brazos St.; 800-252-9367; driskillhotel.com; doubles from $219

Mansion at Judge’s Hill
An immaculately renovated Greek Revival mansion has been transformed into a 48-room boutique hotel near the campus, with sandstone columns outside and antique armoires and marble fireplaces within. 1900 Rio Grande St.; 512-495-1800; mansionatjudgeshill.com; doubles from $209

Hotel San Jose
This sleek 40-room bungalow-style hotel keeps things Zen behind stucco walls, even in the middle of the trendy, traffic-prone South Congress strip. 1316 S. Congress Ave.; 800-574-8897; sanjosehotel.com; doubles from $90

Lake Austin Spa Resort
The luxe lakeside spa makes for a decadent overnight stay, with savory, calorie-conscious meals. After your evening treatment, you can walk back to your room beneath Texas stars. 1705 S. Quinlan Park; 512-372-7300; lakeaustin.com; doubles from $3,410 for three-day weekend stay

EAT

Uchi
Chef Tyson Cole bends traditional Japanese cuisine to his innovative whim. (Cracked-black-pepper sorbet was a recent dessert item.) If possible, let Cole take you on a wild trip with his tasting menu. Reservations strongly recommended (uchiaustin.com). 801 S. Lamar Blvd.; 512-916-4808; dinner for two, $86*

El Chilito
This rainbow-colored drive-through leans toward the Mexican side of Tex-Mex. Try the cochinita pibil taco, juicy cuts of braised pork marinated in orange and achiote and wrapped in fresh corn tortillas. At breakfast try Charlie’s Special, a glorious mix of chorizo, scrambled eggs and tomato. 2209 Manor Dr.; 512-382-3797; lunch for two, $16

Lambert’s
Housed in a beautifully renovated building in the 2nd Street retail district, this self-proclaimed “fancy barbecue” joint gives upscale treatment to down-home dishes. The fried pie alone is worth a visit. 401 W. 2nd St.; 512-494-1500; dinner for two, $65

Shady Grove
Stop in for an early dinner after hiking the Green Belt or swimming at Barton Springs. Sip a “shady thang” (their take on a frozen margarita) underneath a pecan tree as you wait for your green-chile cheeseburger. It’ll probably be the best burger you have all year. 1624 Barton Springs Rd.; 512-474-9991; lunch for two, $30

Enoteca Vespaio
This unfussy but sharply run bistro is one of a clutch of fine Italian restaurants—Cibo, La Traviata and Enoteca’s more upscale sister, Vespaio—within a $5 taxi ride from downtown. Enoteca favors locally grown ingredients; during a recent lunch, a cook was spotted nipping out back to collect bay leaves from the garden. 1610 S. Congress Ave.; 512-441-7672; dinner for two, $50

*Prices cover a three-course meal for two, not including drinks, tax or tip.

ON TEXAS BBQ
For most of us it’s hard to tell that Austin’s barbecue is in decline. But local cue connoisseur John Morthland says times are tough. “Actually along with Ben’s Longbranch and Sam’s on the East Side I think Whole Foods has about the best BBQ in town, which is kind of sad,” says Morthland. Instead head to the hills. For Morthland’s rundown on the best Texas hill country BBQ,  read his article The Texas BBQ Belt .

EAST SIDE, YA’LL
Head across the great divide (I-35) to East Austin where artsy types and professors have settled. In a city of al fresco dining, the Red House Lounge’s front yard stands out with a wonderful jumble of molded metal lawn chairs shaded by a magnolia tree. Try a frosty goblet of Blanco, TX-brewed Fireman’s 4 ale. Forget looking cool and be safe, use both hands.