Xiaguan is the capital of the prefecture and is also commonly referred to as Dali City. Some meeting points have not yet been registered. The church in Xiaguan, which is a simple two-storey building accessible through a side street, has a congregation of 1,300 consisting mainly of Han Chinese. The Gospel is spread mainly through the laity and conversion takes place often because of a healing experience or because of newfound faith in the Bible. New converts are required to attend Bible study classes for about two to three months before they are baptized.
Preachers visit church members in their homes at least twice a month.
In the 1980s, the congregation comprised mainly of elderly people. Now, there are more and more youth. At Xiaguan Church, Sunday worship is at 2 p.m. and is preceded by Sunday school for the children. During worship services, sermons are given either by the pastor, one of the elders, or one of the three seminary graduates now working in Dali. There is considerable sharing and exchange between the Xiaguan and Dali Old City churches.