Dali is located at the junction of the Yunnan-Guizhou Plateau and the Hengduan Mountains. The mountainous Cangshan Mountains and the vast clear blue Erhai Lake together form a magnificent picture of lakes and mountains.

Twenty-five ethnic minorities, including Bai, Yi, Hui, Tibetan, Lisu and Naxi, live scattered in ancient villages and towns such as Dali Ancient City, Xizhou and Shuanglang. Folk skills such as tie-dyeing and traditional snacks such as bait cubes fully display their ethnic charm.