Set on the northern tip of the Fanari Peninsula is the deep sheltered bay of Kefaloniaai??i??s capital city Argostoli.

In 1812, plans were drawn up by the then British governors of Kefalonia to build what was originally a wooden bridge linking the two sides of the inlet at its narrowest part to Drapano, a small village across the water, some 950 metres distance away. In 1842 the Drapano Bridge was completely rebuilt using stone and a stone obelisk was constructed about halfway across the bridge, marking the middle of the crossing. The obelisk still stands and is a famous landmark of the island and can be found on calendars, paintings, mugs and other tourist goods. Since 2004 the bridge has been closed to all vehicles and due to the high cost of repair, it has remained closed to traffic. Pedestrians and 2 wheel vehicles only can still use the bridge to cross the waterway.

The lagoon to the right of the bridge is called the Koutavos lagoon.
Argostoli is a modern town, mainly built after the 1953 earthquake. It is a well laid out city, with large squares adorned with statues, wide streets and tree-lined avenues and a very lively harbour and main central square lined with cafes, bars and restaurants.

Most of the original old buildings were destroyed by the earthquake and no longer exist, except in the memories of the older citizens and in the photographic archives of the city.

Important sights in the town of Argostoli include the main square, Valianou Square, with its statue of the cityai??i??s benefactor Valianis and the impressive Government House and Town Hall buildings. The church of Agios Spyridon with its excellent gilded wood-carved screen is on the Lithostroto, the main pedestrian precinct in the city. Between Valianou and Kambanas Squares, lie the Archaeological Museum, the Kephalos Theatre, the Koryalenios Library with the Folklore Museum, and Argostoli cathedral. Also worth visiting is the cobble paved quay-side with the fishing boats offering fresh fish catches and the Pharaoh hill, which offers a panoramic view over the city.