The Penglai Water City, also called Beiwo City, was a fortress of coastal defense and a hinge of sea transportation. Facing the sea and learning against the mountain, the water city has a precipitous cliff, which makes it a natural barrier itself. The city became a military stronghold in the Han Dynasty (206BC-220AD) and the Tang Dynasty (618-907). Establishments for coastal defenses were built in the second year (1042) of the Qingli reign of the Northern Song Dynasty (960-1127). The water city was built in the ninth year (1376) of the Hongwu reign of the early Ming Dynasty (1368-1644); military headquarters against Japanese was established in the sixth year (1408) of the Yongle reign. Established in the twenty-fourth year (1596) of the Wanli reign, Chief Department of War Inspection (a governmental department in ancient China) governed the affairs about the fight and the coast defense of Shandong Province and concurrently managed the sea transportation. Qi Jiguang, a famous anti-Japanese general, used to lead the navy and prepare for the battle against Japan here. A large number of troops had been stationed here in the early Qing Dynasty.

Having a perimeter of 2,200 meters, the water city was built of mixed earth and stones, with a rectangle plane. The only two doors open are the south door and the north door. The former is a land door leading to a land route. The latter is a water door leading to the sea. Located in the center of the water city, Xiaohai (small sea) has a rectangular plane, with a length of 655 meters from south to north, and splits the city into two parts, east part and west part. Occupying half of water surface, it is a main construction in the city and is for berthing ships and training the navy. In its flourishing age in the Ming Dynasty, there are waterside pavilions dotting the bank, with music and songs all through the night. Several establishments for war were built inside and outside the water city, such as docks, anti-wave platforms, wave-preventing dams, navy encampments, lighthouses, emplacements, fight platforms, water gates and moats, etc, which form a precise sea defense system that holds an important place in the history of Chinese seaport architecture.

The Penglai Pavilion is located on the top of Danya Mountain in the north of Penglai County, east of Shandong Province.

The buildings of the Penglai Pavilion are high up in the air, with cloud and mist around, making it look like an Asgard or a jade pavilion. Stepping on and looking around the mountains and islands, one can see unbounded sea with water and sky in the same color, illusively; the wonder of mirage appears often. This is the famous Penglai fairyland in ancient stories. The Penglai Pavilion was first built in the Jiayou reign of the Northern Song Dynasty and latter expanded in the Ming Dynasty. It has a double-eave gable and hip roof and is 15 meters tall with cloister around. On its top hangs a stele with the name of the pavilion written in golden letters by Tie Bao, a calligrapher of the Qing Dynasty (1644-1911). There are several constructions in the south of the pavilion, such as the Sanqing Hall, the Luzu Hall, the Tianhou Palace, the Longwang Palace, the Guanlan Platform, etc. These buildings feature a compact layout.

Penglai Mountain is one of the three immortal mountains (Penglai, Fangzhang, Yingzhou) of Taoism. According to the historical record, when the Great Yu came here to control the floods, he worshipped the God in the cave and credited the water control to the empyrean. Later, Qin Emperor Shihuang, Han Emperor Wudi also sought gods here for pills of immortal. Assigned by Qin Emperor Shihuang, Xu Fu, an alchemist in the Qin Dynasty (221-206BC), set sail here to seek gods but never returned. The Guanlan Pavilion is located in the southeast of the Penglai Pavilion. Viewing the sea scenery and the sunrise in the pavilion is full of sentiment. Below the cliff of the Guanlan Pavilion is the old water city, where Qi Jiguang, a national hero, used to direct the navy drilling for the fight against Japanese invasion. The Penglai Pavilion has been a conglomeration place for literators and scholars since long before. More than 200 inscriptions for sea viewing and notes in past dynasties were preserved there now. 
 

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