Li River is the most popular spot in Yangshuo. The whole town extends away from the banks of the river back towards Dragon River in the south. This river leads all the way from Guilin and it is also possible to enter Yangshuo by ferry. Along the way from Guilin, you actually pass through the 'Yangdi to Xingping scenic area'. This place has been written about in poetry for hundreds of years and is still the inspiration of much of Chinese art and poetry. If you have a 20 Yuan note , you can actually see that this valley is painted on the front of the note. You had better enjoy this by walking through (5-6 hours) or taking a bamboo raft and drifting back into town.  Riding out and drifting in is a great idea too.