Located a few hours North of Dali, South West of Lijiang. once a transfer town on the Tea Horse Route, Shaxi was renovated by a swiss NGO in 2001. situated in the middle of a Valley, surounded by pine covered hill, which host 1000 year old Grotos and a hand full of small lakes.
the town is quiet, sleepy even. if your looking for a side trip on your way from Dali to Lijiang, it worth a trip. though the renovation has given Shaxi a museum feel to the place, it's still very relaxing.