Dali is a city located at 1975m above sea level in the Northern part of the Yunnan province. Dali is known for its old town embedded between mountains and the Erhai Lake.
If you are heading from Yuanyang, you need to be mentally prepared for a long 24-hour commuting journey. You have to get a minivan from Pugao to Xinjie, a bus from Xinjie to Nansha, a bus from Nansha to Jianshui and an overnight train from Jianshui to Dali.
If you are looking for an authentic old town, I would not recommend going to Dali. The city is a chill place with loads of restaurants and Yunnan specials but it has been massively renovated. Most parts of the old town are still under construction. Travel-wise, Dali does not have much interest in my opinion!