As one of China's first 24 historic and cultural cities promulgated by the State Council in 1982, the old town of Dali also known as Yeyu or Purple Town in old times is located 13 kilometers north to Xiaguan, the capital city of Dali Bai Autonomous Prefecture of Yunnan. 

The history of the Town can date back to the Tianbao Period of the Tang Dynasty (618-907) when Ge Luofeng the King of Nanzhao Kingdom (738-937) decided to construct its capital in the west of Dali old town (near the Three Pagodas Park). The existent old town of the present scale was constructed in the Hongwu Period of the Ming Dynasty (1368-1644).

In the 1950s, the walls were once destroyed, and the south gate was restored in 1982, on which one can see two big Chinese characters Dali which are the calligraphic works of Mr. Guo Moruo. 

Most residences and architectures inside the town feature the Bai ethnic style, with slab stone paved lanes and streets. In the town, there are also brooks originating from the Cangshan Mt and finding their way to the Er’hai Lake. 

Fuxing Road, the major latitudinal passage, goes through old town along with lots of boutique shops selling marbles, bandhnu crafts, jewelries and other handicrafts. And the town is also known for its “Foreigners Street”.