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Butterknowle is a village in Teesdale, County Durham, England. Butterknowle is situated between the market towns of Bishop Auckland (9 miles to the east) and Barnard Castle (6 miles to the south-west). It has an attractive rural setting within the Gaunless Valley, overlooked by the gorse-covered Cockfield Fell. The fell itself is a scheduled ancient monument, containing evidence of Roman settlements and a medieval coal mine, thought to be the earliest inland colliery recorded. The war memorial, on Pinfold Lane near the village hall, is a Grade II listed building.