Shuhe is a Naxi settlement a few kilometres north-west of the old town of Lijiang and one of the first inhabited parts of the valley. The Tea Horse Road ran through the quarter, carrying Yunnan tea to Tibet by caravan and bringing horses and furs back. Stone-paved streets, channels of mountain water and low houses with wooden galleries have kept the layout of a trading village. At its centre stand Sifangjie Square with its open stage and the old bridges over the stream, where pack horses are still kept to this day. There are noticeably fewer people here than in Lijiang itself, and entry to the grounds is free.
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