Dali has long been a regional centre of commerce, being located at a crossroads of trade routes between Tibet, China, Burma, and Southeast Asia. The Bai people first settled the region 3000 years ago. Dali first emerged as the capital of the Nanzhao Kingdom in the 8th century. Later, the town served as the capital of the Kingdom of Dali until its conquest by the Yuan. The old town of Dali has been preserved in a 1.5 by 1.5 km wide townsite surrounded by its ancient walls. Due to its relatively well-preserved architecture, the town has developed as a major tourist attraction in recent decades.
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A very commercialised ancient city that somehow lost its ancient feel - too many shops selling things of the same kind, too many tourists, too modern... hard to trace the foot steps of the old days except some building structures that are still standing strong and part of the stoney walkways...