Located in the northwest part of Yunnan Province, Lijiang is composed of a new town and an old town. Most visitors traveling to Lijiang go there to visit the old town, which was declared a UNESCO World Heritage Site in 1998. However, after a magnitude 7.2 earthquake in February 1996, the original old town was extensively renovated and most of the original buildings of Lijiang were restored.

In spite of that, the old town has become a mecca for domestic tourism, drawing many large groups of Chinese tourist. With its functioning canals lining narrow winding alleyways and ancient Chinese architecture, Lijiang retains much of its charm and is one of the more impressive stops in the region.

The dominant local ethnic minority in Lijiang is the Naxi, with many Yi and Bai in the area. The Naxi are a matriarchal society and are the subject of much interest among Chinese and foreign tourists. The Naxi are matriarchal insomuch as property is traditionally inherited down the female line, and men move into the wife's family home after marriage.