Old Town of Lijiang, with a history of more than 800 years, is one of the most famous towns on the Ancient Tea Horse Road. The ancient town features wooden houses, green tiles, old streets, stone paved lanes, tiny bridges, and flowing water. Standing on the east avenue of the ancient town, visitors can look up and see Jade Dragon Snow Mountain in the distance.

Old Town of Lijiang is built at the foot of the mountain and the streets and lanes are arranged along the streams. Sifang Street at the center of the ancient town is also a trading market on the Ancient Tea Horse Road. The four main streets (Guangyi Street, Qiyi Street, Wuyi Street, and Xinhua Street) stretch out from Sifang Street and develop into the criss-cross streets of Old Town of Lijiang. This layout is also one of the distinctive characteristics and styles of Chinese ancient towns and folk houses.