Federalsburg is a small community, rich in history and known for gracious, hospitable living. Federalsburg is located on the Marshyhope Creek in the southernmost part of Caroline County. The Town is blessed with easy access to the Chesapeake Bay, the Atlantic Ocean and all points in between. The Town is surrounded by beautiful rural landscape. Citizens are friendly and caring. Neighborhoods are small and quiet. Traffic is unhurried. All this reminds people of a more nostalgic time and place for most communities.