An ancient town inhabited mainly by the Naxi minority people. The town was founded in 1127. The roads in the town are paved with colored pebbles produced in Lijiang, and there are many stone bridges and memorial archways built during the Ming and Qing Dynasties. Most of the homes are made of mud and wood. The palace's murals depicting religious themes were painted during the Ming Dynasty. The traditional Dongba Culture of the Naxi ethnic group has been preserved in Lijiang.