My tour guide, a local naxi recommended this street for cheap and good food. I haven't done all the restaurants around here but the prices are reasonable. I got pretty good tea leaves (made some tea already) at a reasonable price. It's not a long Street though and don't expect to get international cuisine. Just cheap local fare. Well lijiang is not bali I guess. I'm happy enough since I'm on a shoestring budget and getting cheap and delicious local fare was good enough for me.

Walk away from the main entrance of Lijiang old town, where the water wheel is located, bear to the left, you will walk right into Mahua street, you are not at old town any more, you will find many restaurants in this area, banks, super market and post office, the most popular choice on the menu is hot pot, our favorite is with the whole chicken and order many variety of mushrooms with it, July, August and September is mushrooms season, it's our best meal in Lijiang and delicious, cost about $ 20 U.S. dollar per person and worth it.