Dàlǐ Shì de zhèngfǔ zài Xiàguān, bú zài gǔchéng lǐ.
Dali City's government sits in Xiaguan, not in the old town.
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In everyday speech the city is just 大理. The official 大理市 takes in both the old town of Dali and the newer city of 下关 at the south end of 洱海 Lake, where the offices, the railway station and most of the people are.