Yunnan transport
Two hours by high-speed rail is the best transport in Yunnan: cheap relative to a car, fast, and it drops you in the old town.
Trains run from Kunming Railway Station in the north of the city to Dali in about 2 hours on the Dali-Lijiang high-speed line. Second class is roughly 145 to 155 RMB depending on the service, and first class is higher for little extra benefit on a trip this short.
There are two Dali stations and this is the single most common mistake. Dali station sits on the east side of Erhai, close to the old town, about 10 to 15 minutes by taxi. Dali West is the older station several kilometres away on the west side of the lake, so a trip from there to the old town takes 30 to 40 minutes by taxi or bus. Check the station name on your ticket before you board.
From Dali station, a taxi to the old town is quick and cheap. The old town gates are walkable from most of the central guesthouses, and the Three Pagodas are a 15 minute walk south of the centre.
Do not plan a tight connection on the same day as a long train ride from another city. Dali rewards an afternoon of nothing in particular, which is how the lake road and the old town actually get appreciated.