I went to college at Maranatha in Watertown. I graduated in '96. (I lived off campus this last year as I was married. Different perspective than on campus.) I have a sister that attended there later. When we went back for her graduation in 2001, I was shocked at how grown the area had become. I have not been there since, but I can tell you what they had 10 years ago. There was a larger grocery store called Pic-N-Save, Piggly Wiggly, Kohl's, Walmart, newly redone town library (very nice), Ponderosa, McDonald's, Hardee's, Walgreens, Culver's, Perkins, Pizza Hut, hotels, and a hospital. The city has grown so much, yet just a mile or less out of town and you are in a rural setting. It has everything you need and I am sure a lot more over the past 10 years. It is an hour from Madison and an hour from Milwaukee. There is an outlet mall in Johnson Creek, not far away. If you want to live closer to the freeway than I would check into Johnson Creek or Sun Prairie. If I remember right Watertown is about 20 minutes from Johnson Creek and 30 minutes from Sun Prairie. Another city nearby is Oconomowac. This city had a nice little restaurant called Mug and Muffin. I can remember sitting there eating a bread bowl filled with hot chili in the cold winter... anyway, I am rambling. There is a ski hill in Oconomowac if you ski downhill. Just for some added info - Watertown is also home of the first Kindergarten and Octagon House.
Here is a link to there city. http://www.ci.watertown.wi.us/
Hope this info helps.