In this case, "water town" means that the city was built on a series of islands, connected by bridges. This was an historical city, with many very old buildings. Apparently it once was very prosperous, but now relies on tourism as it's main industry.Outside of the old part of town, we noticed that there was a new "resort" complex, with many condo apartments for the wealthy of Shanghai to get away from the city. It sounded familiar...
These pictures show some of the canals with bridges between the islands.
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