Landscape of the ancient Lijiang town was restored by using VirtualGIS technology in this paper，and the scientificalness of city site selection was analyzed too. When selecting the city site of the ancient Lijiang town in Ming Dynasty, people used the geomantic omen method, and took into account physiognomic, geologic, hydrologic and climate conditions. The geographic superiority of the ancient Lijiang town was very obvious. The site selection can serve as a classical model for reference in city building.