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The village is on the south end of Lough Derg, is a twinned with Ballina in the County Tipperary side of the Shannon.
A narrow bridge links the two.
The surrounding area is popular for hill-walking.
The town owes its origin to a sixth century monastic settlement founded by St Molua, or Lua, originally on an island in the Shannon 1km below the present Killaloe Bridge which later moved onto the mainland.
In the tenth century it was base for Brian Boru as it controlled the strategic crossing of the Shannon above Limerick, where the Vikings were in control.
He had his palace, Kincora, on the high ground where the current Catholic Church stands.
Between 1002 and 1014 therefore when he was the High King, Killaloe was effectively the capital of all Ireland.
St Flannans Cathedral was built between 1185 and 1225, with an oratory for the same saint, who had been the abbot of Killaloe in the seventh century and it became the centre of the diocese.
The cathedral was destroyed and rebuilt in the fourteenth century and only a Romanesque arch survives of the original building.
In Elizabethan times, Ennis was chosen as the county town of Clare and the importance of Killaloe declined.
The cathedral survived and is now the seat of the Roman Catholic diocese.
Today, Killaloe is a hub of tourist activity, with Lough Derg being the focal points for the thousands of visitors to the area during the summer months.
A beautiful marina houses craft of all sizes and shapes.
Killaloe has a reputation for being an affluent place to live and this is reflected by the ostentatious property dotted around the lake and the corresponding expensive prices.
It is considered a chic village and many business people from Limerick and other towns have holiday homes in the area.
There are a number of good hotels and numerous quality restaurants in the town.
Cruisers can be hired at the marina for any duration and there are also skippered pleasure trips to the upper part of the lake.