Lijiang covers an area of 14 sq. km, and has over 4,200 households. It is also known as Dayan Town, meaning large inkstone, as it is laid out in the shape of a traditional Chinese inkstone. This 800-year-old habitation of the Naxi people is noteworthy for its harmony with nature, ingenious architecture and urban facilities. Lying in a broad, fertile valley in the northwest of Yunnan Province, the old town of Lijiang has been a commercial, political and cultural center of the Naxi people and other ethnic minorities for over eight centuries.
It was designated as a town around the beginning the Yuan Dynasty (1271-1368). From 1253 on, the Naxi people of Lijiang developed a unique social system, customs and culture of their own under the rule of a hereditary succession of chieftains of the Mu clan. In the 18th century, the Qing Dynasty rulers implemented a policy of cultural interaction, and the Naxi people adopted the customs of the Tibetan and Han peoples. Despite several earthquakes that afflicted Lijiang, and because of renovation, most of the old town retains its original structure.
With Sifang Street as the central thoroughfare, Lijiang has houses made of stone and wood, combining the architectural features of the Han, Bai and Tibetan ethnic groups, as well as the Naxi.
A typical house has two stories. A row of three main rooms on the ground floor faces south and is flanked on each side by a row of three rooms projecting at right angles and opening inward to form a front courtyard hidden from public view by a wall. The three main rooms are for the elders, and the side rooms are for the younger members of the family. The roof edges over the gables are embellished with fish-shaped boards, known locally as "suspended fish". In the Chinese language, "fish" and "surplus" sound the same, so the carved fish are a sort of prayer for
auspiciousness and wealth. The doorway is decorated with exquisite carvings, and the courtyard is paved with pebbles, colored tiles, or colored bricks. The middle room of the main row has six latticed windows ornamented with designs of flowers, birds and animals. A spacious veranda in front of the main rooms provides a space for the family members to relax in. Almost every household has a flowerbed and a pool in the courtyard.
Lijiang is surrounded by the snow-covered Yulong Mountains (Jade Dragon Snow Mountain). "There are four seasons on one mountain", says a folk song about Yulong, "and the scenery changes every ten li (five km)". The Lijiang area is known as a treasure house of animals and plants, and a huge natural reservoir. Water flowing down from melting glaciers and snow high in the mountains irrigates the fields and provides water for the residents.
Water, in fact, flows everywhere in Lijiang. Crystal-clear streams wind around all the houses and flow through the courtyards. Stone bridges span the streams. Streets paved with colored stones, including Sifang (Square) Street, are thus kept free from dust and mud in all seasons. The source of these streams is the Yuquan (Jade Spring) River, which meanders past the foot of Xiangshan (Elephant Hill), north of Lijiang. In addition, there is the Baimalong (White-Horse Dragon) Pool and wells sunk around the numerous springs. The local people have made ponds along the courses of the springs. The upper ponds supply drinking water, the middle ponds are for washing vegetables, and the lower ponds are for washing clothes. The spring water that overflows the banks is used for washing the streets.
All over the old town there are unique buildings inspired by and in harmony with Nature. Cultural relics, both tangible and intangible, also abound. In the vicinity of Lijiang there are the Shuhe Folk Residence and Baisha Folk Residence Complex, as well as cultural sites like the Five Phoenix Tower in the Fuguo Temple, the Great Treasure Palace and the Glazed Hall.