This compact little town is easily covered on foot. There's a map posted next to the bus stop, with all tourist destinations clearly marked in English. If the taxi drivers waiting there tell you that Wulai Waterfall is too far away to walk, don't believe them: it's a nice stroll of less than half an hour. The walk also passes through the open air market on Wulai Old Street, and continues to the falls via the "Lover's Path", which affords some nice views of the river gorge below the falls.
The little train brings you to the terminus of the cable car that brings you to the top of a nearby mountain. From the main tourist street in the town, cross the bridge, and take the wooden staircase across the road. It goes up to the left. Follow the pedestrian street to the station. The little train costs NT$50 each way and takes you one and a half kilometers up the valley.
The Gondola is a spectacular way to see Wulai Falls as it takes visitors from the base of the gorge to the top of the mountain. At the top there is a hotel, conference center, and a beautiful garden park with paddle boats, nature trails, and a natural obstacle course é²ä»æ¨å