At an elevation of 2500 meters, Lashi Lake (Lashihai) is the largest highland lake in Lijiang County, and an important habitat for over 57 species of migratory birds,the highest waterbird species diversity of any lake in Northwest Yunnan. Rich in cultural and biological diversity, the Lashi Lake watershed is home to two minority ethnic groups, the Naxi and the Yi, and provides critical habitat for the endangered black-necked crane.

The watershed is also the primary water supply to a large downstream population and the rapidly growing tourism industry in the historic city of Lijiang.