Penn Quarter is a historic neighborhood of Downtown Washington, D.C., located north of Pennsylvania Avenue, in Northwest D.C. Penn Quarter is roughly equivalent to the city's early downtown core near Pennsylvania Avenue and 7th Street NW, Penn Quarter is an entertainment and commercial hub, home to many museums, theaters, cinemas, restaurants, bars, art galleries and retail shops. Landmarks include the Capital One Arena, the National Portrait Gallery, and the Harman Center for the Arts, among others. The area is also home to a popular farmers market and several food, wine, art, and culture focused festivals.

Downtown is the central business district of Washington, D.C., located in Northwest D.C. It is the third largest central business district in the United States. The "Traditional Downtown" has been defined as an area roughly between Union Station in the east and 16th Street NW in the west, and between the National Mall on the south and Massachusetts Avenue on the north, including Penn Quarter. However, nowadays, Downtown D.C. usually refers to a larger area, as the DC Office of Planning states:…most residents, workers, and visitors think of Downtown in a broader sense — including areas as far north as Dupont Circle, as far west as Foggy Bottom, and as far east as Capitol Hill. Only about half of the central city workforce is located within the city’s traditional Downtown.