The Golden Sand River (Jinshajiang River) flows at great speed down to Shigu and then with the width of the river enlarged from here, the speed of the water gradually comes down and makes Shigu a natural ferry.Shigu is always an important part of the Tea-horse Road. From thiis place, people can go south to Dali and north to Tibet. In the history, Zhuge Liang and Kublai Khan all close here to cross the Yangze River. 

There is a stone-drum-shaped tombstone in the town with the inscription recording the story that Mu Gao, the Naxi chieftain, beat the Tibetan. And that is the reason why the town was named as Shigu (stone drum). The climate in Shigu is mild.

 The soil here is very fertile and productive. Because of all these, it is very important in the Tea-horse Road. Tibetan people brought furs and herbs here to exchange for tea, salt, cloth and other articles for people live around. It is in the market day when you can really experience the natural and simple life in this important town on Tea-horse Road.