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Nanhu Island lies southeast of Kunming Lake opposite Longevity Hill. With an area of about 1 hectare (2.47 acres), it is the largest island in the Summer Palace. When Emperor Qianlong (1711-1799) enlarged Kunming Lake, he ordered workers to save the temples and buildings but to excavate the earth; thus creating Nanhu Island.

On the island are Hanxu (Modesty) Hall, Wangyan (Looking-at-the-Eaves) Pavilion, Dragon King Temple, and other structures. Hanxu Hall is the major construction on the island; Wangyan Pavilion was the site from which to inspect navy drills; and the Dragon King Temple, which changed its name to "Guangrun Lingyu Temple" (Widely-Moistening Fancy-Rain Temple), was employed to pray for rain.

The island is banked with carved stone-stripes and surrounded by blue and white stones. Visitors can reach the island through the Seventeen-Arch Bridge.