Past Phoenicia, the surrounding slopes become steeper as the road and creek curve around Panther Mountain, one of the Catskill High Peaks, to the south. At Allaben, the Shandaken Tunnel crosses under the road, bringing water from Schoharie Reservoir into the creek. The road and creek start bending to the south to the hamlet of Shandaken, where the town hall on the south side of the road is followed by the southern terminus of NY 42's northern segment. As NY 28 continues trending southwest, the valley becomes less developed. Balsam Mountain, another High Peak, looms ahead.