The village of Kholui lies between Palekh and Mstera some 360 km from Moscow and a few kilometers from where the winding Teza River enters the Klyazma.In spring, when the Teza floods, Kholui becomes a kind of northern Venice, with villagers getting about in small boats. The village name is associated with the river: traditionally, woven fences of branches and bramble, called "kholui," were set in the river as fish traps.

The technology of Kholui miniatures is much like that of Palekh. The craft took root here at the same time as the craft was developing in Mstera. Kholui miniatures use both the light backgrounds of Mstera and the dark of Palekh. The painted scenes may sometimes cover the entire surface of the form (see  article for more details).