Located four kilometers to the northwest of the old town of Lijiang, Shuhe ancient town was one of the earliest gathering places of Lijiang valley plain region for the Naxi ancestors. It was an important town on the Tea-horse Ancient Road that has been well preserved, and a live specimen of Naxi ancestors' transition from agricultural civilization to commercial civilization as well. In 1997, Shuhe was enlisted by the UNESCO as one of the important components of the World Cultural Heritage - Lijiang Ancient Town. In 2005, it was honored as the well-known township with the best residential environment in the appraisal event of Well-known Township of China.

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