Most travelers think of Dali as a place to load up on banana pancakes before hitting the Tibetan plateau, especially since the Chinese tour groups discovered Cangshan and Erhai. But Dali has unique natural beauty, friendly locals and a patchwork of ethnicities which you can get to know only if you get off the backpacker trail.

Dali is an important stop along the ancient Tea and Horse caravan trail (茶马古道, cha ma gudao). Dust off your hiking boots or rent a bike from Cycling Dali (55 Bohai Road), head east towards Erhai Lake and then north to get lost among the local villages and farmer’s fields which pepper the west bank.

Cycle around heaps of beans and tea leaves drying in the sun and see local women draping freshly tie-dyed sheets and fishermen along the shores of the lake angling for carp. Spot women of the Bai minority who wear their hair in a bun when married and in a pigtail if single. If you stop and talk to people, with even a basic command of Mandarin you can easily chat with locals about daily life. Linger long enough and more often than not you’ll find yourself served tea and fawned over.

Tourist-trap boat trips on Erhai Lake are sold everywhere. For a more unique experience, head to the lake very early or at dusk (Erhai Lake Park is open from 8:30am-6pm), and bargain with one of the local small boat owners for a private cormorant fishing show. A team of usually two locals will take you out on their boat and show you how the Bai minority have fished for centuries–training their long-necked, hooked-beaked birds to capture fish but not swallow them. A private trip costs between RMB200-600.

Due north of Dali lies a true hidden gem, the village of Shaxi, an ancient trading post with winding cobbled streets and authentic Bai architecture. On a Friday morning, head to Shaxi’s Sideng market where you can pick up authentic wood carvings and locally made yogurt and honeycomb. From the market, grab a cab (20 minutes) to the Shibao Shan grottoes. It is possible to hike directly to the grottoes (1.5 hours), but you need a local guide. Once at Shibao Shan, stroll through beautiful temples and marvel at Buddhist rock carvings which have been around for nearly 1,300 years.

There’s no direct bus from Dali to Shaxi, so first get to Jianchuan (three hours), then switch to a minibus (45 minutes).

Back in Dali Old Town, try out local fried cheese from the countless snack booths on Renmin Lu (less touristy than “Foreigner’s Street”), before ambling through the back streets. Random pockets of retired couples and young locals gather to ballroom dance and play chess in the evenings. The Sun Island Café on Renmin Lu is a great place to enjoy live music.

We also recommend going out with the Dali Hash House Harriers. They meet every first and third Sunday of the month at the Hump Hostel. The runs take you through truly hidden parts of Dali that only the locals know.

Stay either at Mama Naxi or the Hump Hostel.