The historic town of telluride sits in the box canyon just beside the Telluride ski resort Surrounded on 3 sides by 13,000 foot peaks and waterfalls.

  Town is connected to the Mountain Village by a free gondola that can be ridden by anyone for free without a lift ticket.   Several ski runs from the mountain go down into town, but they are more difficult so many people take the gondola to the top and use the trails on the other side of the ridge toward Mountain Village and then ride the gondola back to town.

Many of the accomodations in Telluride are historic.  You can find value/silver rated accomodations as well as the most luxurious homes and condos within the town.  Most are within walking distance to the gondola.  There are many many many fine dining and apres ski options as well as pizza and casual dining and shopping options. 
All Summer, Telluride is home to a festival every weekend from May to September.  One weekend there is even a 'no-festival' festival where the locals get the town to themselves.  Of course that festival has gotten big too.