As a native Southern New Englander, I can't help but speak up.
The name of the town is Westerly and it's in Rhode Island. It's not the capital, at least not officially. But if you like beaches and arcades it might as well be. For Connecticut kids (east of New Haven) it continues to be the place to go when you want experience actual waves instead of those tempered by the whole of Long Island. Westerly has great beaches, lots of water slides; it used to have a really cool go-kart track. Westerly has great seafood too (I personally recommend Two Little Fish). You can also go on a whale watch or check out the lighthouse at Watch Hill. Finally, at 60 Industrial Drive (just of I-95), you can check the former home of the Guild Guitar Company.
-Chris