Final answer:
The Bourbon Festival is held in Kentucky, known for its ideal conditions for whiskey and bourbon production. Some distilleries, like the Jack Daniels in Lynchburg, Tennessee, are in dry counties where sales of liquor are prohibited.
Step-by-step explanation:
The Bourbon Festival in Bardstown, which boasts '6 full days of smooth bourbon,' is held in the state of Kentucky. This region is well-known for its high-quality whiskey and bourbon production, thanks to the naturally filtered groundwater sources flowing through limestone bedrock, which is ideal for distilling. Despite this rich tradition of distilling, some distilleries are ironically located in dry counties, such as Lynchburg, Tennessee, where you can find the Jack Daniels distillery but cannot purchase a drink legally due to local laws.