This area of Maine is arguably the nicest in the state. The "Mahogany cottage" is one of the most beautiful places that I've stayed. The water views with a fire crackling away has an instant de-stressing effect. The cottage is well equipped, we wanted for nothing.
Tony the owner is very knowledgeable and can point you in the right direction no matter your interests. There are loads of places to eat, drink, and shop in town or out. Rockland and Camden are great destinations for day trips.
We've stayed here in the summer and the winter, while summer in Maine is like no other place, winter has it's redeeming qualities as well. Nothing like happy hour at the Damariscotta River Grill and catching a movie at the Lincoln County Theater across the street. Staying in or going out, you can't go wrong in this area.