IT IS situated in a small, upmarket town in the heart of Highland Perthshire.

But a bookshop in Aberfeldy that has been open for little more than a decade has been named as one of the top 75 in the world by a prestigious New York magazine.

The Watermill is the only shop in the UK that has made it on to the list World’s Greatest Bookstores, by the New Yorker.

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It is owned by Kevin and Jayne Ramage, who have run the shop in a converted watermill in the town since 2005.

They admit to being stunned but delighted when they found out they had been included in the top stores worldwide.

In the feature, Monty Python star Michael Palin paid tribute to the Watermill, which he opened, and called it one of the best reasons for lovers of literature to visit Scotland.

Mr Ramage said: “Imagine our surprise when a print of a painting of The Watermill arrived from the US.

“A note from New Yorker cartoonist Bob Eckstein explained that we were one of just 75 bookshops worldwide and the only one in Scotland.”

Kevin, who opened the store in 2005 after converting a derelict mill building, added: “This wonderful surprise is a tribute to the outstanding support we have received from our customers.

“Since we opened we have seen off the recession, the rise of online booksellers and e-books.

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“Every year the media predicts the death of bricks-and-mortar bookshops, but this October we have celebrated our strongest sales ever.”

Eckstein explained the project had started life as a more modest tribute to his favourite bookstores in New York, but had then spiralled into a global project because of the response from readers around the world.

He said: “It was a little more than two years ago that I walked around New York, drawing pictures of the city’s endangered landmark bookstores.

“The modest feature, published on the New Yorker website, struck a nerve with book lovers and set in motion a project to draw a full collection of bookstores around the world.

“I ultimately chose 75 stores to feature in Footnotes from the World’s Greatest Bookstores.”

The feature, which has since been extended to a book of prints, quotes celebrities and authors who have special memories relating to each of the shops.

When asked for his most memorable bookstore moment, Palin revealed it was the time he opened the shop in Aberfeldy.

He said: “The most perfect conjunction.

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“The owner of my favourite little bookshop in Kentish Town, London, decamps to the most beautiful countryside in Scotland and decides to turn an old mill into a bookstore.

“I’m asked to open it and witness Kevin, the owner, flinging himself on the waterwheel to get started. I expect it to be a magnificent failure, but it’s been a magnificent success.

“Walter Scott is no longer the only reason for book lovers to go to Scotland.”

Unsurprisingly, the US dominates the top 75, with famed stores such as the Bodhi Tree in Los Angeles, City Lights in San Francisco and Scribner’s and Rizzoli in New York.

But the Watermill is probably unique on the list as it also has a small art gallery and attached homeware section.

The store was also awarded the title of UK Independent Bookshop of the Year in 2009.

Aberfeldy’s previous claim to fame in the global literary market is that it is a sometime home to one of the most successful modern-day writers.

Harry Potter author JK Rowling bought a country retreat, Killiechassie House, on the outskirts of the town in 2001 and has used it as writing base, producing several scripts for her best-selling books while staying there.

The 136-year-old house and 162-acre estate are nestled on the banks of the River Tay.