Located in the northern Verde Valley region of the state of Arizona, Sedona is arguably one of the most beautiful small towns in the world. Glowing in brilliant orange and red, the quaint western settlement is famous for its stunning array of red sandstone rock formations. The famous red stone of Sedona is formed by a layer known as the Schnebly Hill Formation. It is a thick layer of red- to orange-colored, iron-rich sandstone found only in the Sedona vicinity. Its beauty is unprecedented in the world.