Blue Moon Valley is located near Lijiang, in Yunnan province China. Blue Moon Valley, was known for a river called Baishui River. When it is sunny, the water looks blue. The valley is in the shape of crescent. Seen from the distance, it is like a blue moon inset at the bottom of the Jade Dragon Snow Mountain.

麗江藍月谷，又名白水河，玉龍雪山的冰川融化後，形成不少河道，其中一條便是白水河，此河河床為石灰岩，水流其上，似一道白色銀鏈，故名白水河，流到藍月谷這地方，形成一個半月形的湖，湖水碧藍見底，就像一個藍色月亮鑲嵌在玉龍雪山腳下，因而被冠以一個美麗的名字----藍月谷。