It is one of the numerous villages of the Buyi minority located along the Qinglong River.
Shuitouzhai is distinguished by its characteristic architecture – wooden, half-timbered houses with carved windows – and its old water mills. Though increasingly visited by ever larger numbers of people (it's best to avoid weekends and Chinese holidays), it is still an enjoyable place to go and see. Don't miss the chance to meet the local inhabitants, who enjoy teaching their guests the basics of distilling alcohol from rice and traditional tofu production.
You can go on some beautiful excursions and short hikes though the rapeseed and rice fields from Shuitouzhai. The region also has numerous villages, various Buddhist temples and some astonishing gorges bordered by sheer cliffs and waterfalls. Both the ones at Xianghuoyan and the spectacular gorge of Nanjiang, a little further away, are definitely worth a trip to see.