There are a couple of local drinks worthy of special mention. Lijiang Yinjiu and Sulima both commonly available in Lijiang are modern renditions of ancient beer types of the Naxi and Mosuo people and far more enjoyable than the typical bland Chinese lager. Yunnan is famous for tea, as well though Pu Ehr itself is way down south on the road to Xishuanbanna and every fourth shop is a tea shop specializing in the length and breadth of Chinese tea, the likes of which you will not find in your average Western Chinatown.
Unlike the rest of China, Lijiang's cafés and restaurants shut down around 11PM. Several of the bars along bar street face each other across the narrow canal. From here singing erupts across the water by opposing teams of usually girls. In order to keep the singing going small donations are normally requested from the patrons.
Several western bars are beginning to spring up, notably:
LMC - Lijiang Millionaire's Club
LMC is a new cafe/bar in old town, the only one in the old town run by foreigners, and a good meeting place for travelers. Has free wi-fi, live music every night, film nights on Tuesdays, local and imported beers, wines from all over the world, as well as pizza, pasta and Indian meals.