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Dali, historical town, west-central Yunnan sheng (province), southwestern China. It is situated in a fertile basin on the west side of Lake Er; since 1983 historical Dali has been administered as a town under the city also called Dali (formerly Xiaguan), which lies 10 miles (16 km) southeast of the original Dali, at the southern tip of the lake. Dali was the traditional political and commercial centre of Yunnan, being located on the major trade...