Dali Ancient Town is about 13km away from Xiaguan in Dali City and is one of Dali's Three Ancients-ancient city, ancient pagoda and ancient steles. History of Dali dates back to 1382 during the Ming Dynasty and it has been listed among the top historic cities of China.

Unlike any other Chinese town, the traditional Bai ethnic folk houses give the town distinctive feel. The town's layout was uniform, with five main streets from south to north and eight main streets from east to west, while marketplaces were neatly arranged within the town, which has remained unchanged to this date. Besides the Bai houses, the houses with gray-green roof tiles, peculiar workshops, temples, schools and churches with antique flavor are scattered. Traditional marble artworks, like pencil vases, striped screen, and a variety of woven handicrafts of fine straw are laid chockablock on both sides of the street to be appreciated and purchased. Its grand city wall, traditional Bai houses and marvelous scenery have been attracted many visitors.