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The Old Town of Lijiang is located on the Lijiang plain at an elevation of 2，400 meters in southwest China’s Yunnan Province， where a series of strategic passes give access through the surrounding mountains. The Yulong （Jade Dragon） Snow Mountain to the northwest is the source of the rivers and springs which water the plain and supply the Black Dragon Pool， from where waterways feed into a network of canals and channels to supply the town.
The Old Town of Lijiang comprises three component parts： Dayan Old Town， and Baisha and Shuhe housing clusters. Dayan Old Town was established in the Ming Dynasty （1368- 1644） as a commercial center. The Baisha housing cluster was formed earlier during the Song and Yuan Dynasties （960-1368） and is located 8 km north of Dayan Old Town.
Houses here are arranged on a north-south axis around a central， terraced square. The religious complex includes halls and pavilions containing over 40 paintings dated from the early 13th century， depicting subjects relating to Buddhism， Taoism and the life of the Naxi people. These paintings also incorporate cultural elements of the Bai people. Together with the Shuhe housing cluster located 4 km northwest of Dayan Old Town， these settle- ments nestling in mountains and surrounded by water reflect the blend of local cultures， folk customs and traditions that have survived over several centuries.
The Old Town of Lijiang has retained its historic authenticity. Its architecture is renowned for its blending of elements from several cultures that have come together over many centuries. Lijiang also possesses an ancient water-supply system of great complexity and ingenuity that still functions effectively today. The vivid urban space， the vigorous water system， the harmonious building complexes， the comfortable residences of appropriate size， the pleasant environment and the unique folk art combine to form an outstanding example of a human habitat.