A rare opportunity on historic Water Street in the heart of Shelburne! Built in 1855 and filled with original charm and character, this spacious Cape-style property offers approximately 2,195 sq. ft. of versatile living and working space, all within walking distance of the waterfront, shops, and local amenities. With C-2 Commercial zoning and a past life as a bookstore, the property offers exciting potential for those looking for a personality-filled residence, business location, or a combination of both. Extensive improvements have already been completed, including a brand-new roof (2026), new windows (2026), new exterior shakes and paint (2026), complete breezeway replacement (2026), deck and basement hatch replacement, new electric hot water tank (2025), new heat pump (2025) and new oil tank (2020). The main floor offers plenty of room to make the space your own. A generous family room with its own entrance could potentially be reimagined as a main-floor bedroom suite, with plumbing and space already available for a future bathroom. At the rear of the home, an additional room with a past life as a hair studio and a separate exterior entrance, provides even more flexibility—ideal as a storefront, studio, office, workspace, or bonus living area. Upstairs, you'll find a spacious primary bedroom with a closet, two additional good-sized bedrooms, and the home's full bathroom, complete with a charming clawfoot tub. Outside, the beautiful backyard provides plenty of room to garden, entertain, or simply enjoy your own outdoor space. Gravel parking, municipal water, and municipal sewer add everyday convenience. With its prominent Water Street location, generous square footage, recent improvements, and remarkable flexibility, this historic Shelburne property offers an opportunity to create something truly special, whether that's a home, a business, or both.