This hostel was very clean and comfortable. The owner was friendly and helpful and even walked to the bus stop to meet me. Location is perfect if you want to be in old town Dali. From the city center take the number 8 bus to old town Dali. It's easy to get to Erhai Lake just take the number 2 bus for 1rmb. Just one note, no western style toilets if that matters to you. Free wi-fi and food available.