Shaxi is a historic market town, located roughly halfway between Dali and Lijiang.

It is probably the most intact horse caravan town on the Ancient Tea Horse road and international efforts are made to preserve the historical character, for instance of the beautiful main square.

Nearby Shibao mountain contains Buddhist rock carvings and temples of over 1300 years old with, amongst others, images of the bodhisattva Guanyin.

The two main ethnic groups of Shaxi are the Bai and Yi people.