Behind the Town Hall is Bermuda's oldest stone building, constructed with turtle oil and lime mortar in 1620. Unless there's a special event, the landmark building doesn't offer much to see -- you might settle for a look at the exterior, then continue on with your sightseeing. The Old State House, where meetings of the legislative council once took place, was eventually turned over to the Freemasons of St. George. The government asked the annual rent of one peppercorn and insisted on the right to hold meetings here upon demand. The Masonic Lodge members, in a ceremony filled with pageantry, still turn over one peppercorn in rent to the Bermuda government every April.

The annual Peppercorn Ceremony, a 45-minute spectacle, takes place in early to mid-April. The ceremony begins around 11am with the gathering of the Bermuda Regiment on King's Square. Then the premier, mayor, and other dignitaries arrive, amid the bellowing introductions of the town crier. As soon as all the principals have taken their places, a 17-gun salute is fired as the governor and his wife make a grand entrance. His Excellency inspects a military guard of honor while the Bermuda Regiment Band plays. The stage is now set for the presentation of the peppercorn, which sits on a silver plate atop a velvet cushion. Payment is made in a grand and formal manner, after which the Old State House is immediately used for a meeting of Her Majesty's Council.