Located between Cangshan Mountain and Erhai Lake, Dali is a legendary backpackers paradise famous for its cafes and guesthouses where the China traveler can relax with a cold beer, great tunes, and a cheap lodging. Aside from being a backpacker paradise, the city has a long history dating back some 1000 years, during which it was the capital of Nanzhao Kingdom during the Tang Dynasty. The area is famous for its natural beauty and the ethnic culture of the Bai people.
One thing to bear in mind when traveling here, is that the Dali travelers arrive in from Kunming is not the same Dali renowned as a backpakers getaway. In fact, the bus from Kunming arrives in a town known as Dali City, a local administrative municipality that is officially known as Xiaguan. Therefore, our coverage of Dali includes both Xiaguan and the ancient city of Dali (known as Dali Gucheng), where most travelers head straight for.