It was one of the first towns that the ancestors of the Naxi minority lived in, as well as an important stop on the ancient Tea Horse Road, and especially famous for the quality of its leather.
From Lijiang it's easy to get to Shuhe by minibus, taxi, or even bicycle. Its atmosphere reminds you of Lijiang a few decades ago, before the floods of tourists spoiled its authenticity. Shuhe's central square (Sifang Jie),is surrounded by stalls of all sorts, and has live music and dancing at the end of the day. Shuhe's must-see is without doubt its Qinglong bridge, which is the oldest of the region's many bridges.
A short, pretty walk will take you to the top of the old town for a superb view over Shuhe andLijiang. From the old town it's an easy 45 minutes walk to get to the pretty neighboring village of Baisha.