Connecticut has lost another deeply rooted dining room, following an earlier group of beloved local restaurant closures. Water Street Cafe in Stonington Borough closed after dinner service on November 7, ending 32 years of coastal cooking, warm hospitality and hard-won resilience.
Owners Stephanie Hayes-Houlihan and Walter Houlihan opened the restaurant on April 14, 1994, after building careers in New York City’s hotel and catering world. Their restaurant history describes a partnership that paired Walter’s imaginative cooking with Stephanie’s welcoming presence and day-to-day leadership. Stephanie had spent two decades in catering and hotels, experience that helped her turn attentive service into one of the cafe’s signatures. They did not give a specific reason for closing.
A restaurant rebuilt after fire
Water Street Cafe began as a tiny, 12-table room with white tablecloths and reservations required. In 1997, the business moved into the Harbor View Restaurant. Just three and a half months later, a fire destroyed that location, forcing the couple to start again.
Community support helped the cafe return to its original home, where a handcrafted mahogany bar and a more casual pub menu broadened its appeal. Reopening after such a destructive setback strengthened the bond between the owners and the village that helped sustain them. In 2002, Water Street moved to 143 Water Street, the address that became familiar to generations of Stonington diners.
French technique met the Connecticut coast
Walter, a Culinary Institute of America graduate and former chef at the Ambassador Grill at the United Nations Plaza Hotel, built a menu that crossed French, Asian and American traditions. Local seafood and produce kept it grounded in southeastern Connecticut, while the dishes carried a playful signature.
Guests came for Stonington oysters, New England clam chowder, lobster spring rolls, escargot pot pie and duck with scallops. Seafood macaronade, seasonal fish and a changing oyster list reflected what was available rather than forcing the kitchen into a rigid formula. Local organic farms supplied produce, strengthening the connection between Walter’s far-ranging ideas and the surrounding coastal region. The food could feel polished without making the room stiff.
Why customers loved it
The atmosphere mattered as much as the plates. Whimsical objects, eclectic decor, comfortable seating and the mahogany bar gave the cafe a personality of its own. Stephanie and the staff made newcomers feel welcome, while regulars returned often enough to become friends.
In their farewell, the Houlihans thanked customers for the memories, camaraderie and support that made Water Street Cafe special. After surviving relocation, fire and three decades of change, the restaurant leaves Stonington with more than a menu to remember: it leaves the story of a dining room built back by its owners and embraced by its community.
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