Butterknowle is a village in Teesdale, County Durham, England, 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 (Vavasours), thought to be the earliest inland colliery recorded.