The project undertook an urban repair and reconstruction program to replace and re-equip essential social and economic infrastructure, and to restore and rehabilitate traditional housing and other cultural assets in the area. This ancient city has made use of the fine design traditions of Han houses on the Central Plains, while also incorporating the best of local minority groups' architectural styles. The unique urban landscape is enhanced by the fact that old Lijiang is surrounded by hills which separate it from most 20th century construction in the new part of the city. Today, Lijiang is known not only for its natural and architectural beauty, but also for its vibrant traditional culture. Ethnic groups in the area, especially the Naxi, have kept many of their old customs.
Agriculture is still the area's main economic activity.
Over many centuries, the Naxi have built terraced fields and an intricate network of irrigation and drainage canals. About 30 percent of Lijiang's residents are still engaged in traditional handicraft occupations and commercial activities. Craftsmen make utilitarian items from copper, brass, silver, leather and fur. Local textiles and wine are also produced. Naxi traditional music dates back to the Han dynasty.