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Historical Development 
Thanks to the efforts of Pingpu tribe and Chinese immigrants, Danei, a place abundant with mountains and rivers, has been developed into a district that is rich in its natural environment, culture, and industries.
Early Development of Danei
The settlement of Pingpu tribe – Backoloan Community (currently in Shanhua Street), one of the four major Siraya communities, had three branches. One of these branches, "Xinshe” (New Community) travelled along the Tsengwen River valley in about AD 1565, invading Naishawli Community and Bama Community, which occupied the early territory of Dawu Ridge Community, and colonizing a lot of places in this area, including Toushe, Wootou, Dashangiou, Shouhui, Chuwei and some other places, where public shrines worshipping Aliptsoo (Protector of West Siraya Community) can still be found now. In Wootou and Woochigiou, rites and dates of worshiping are decided by the priests of the public shrines in Toushe. They share with Toushe the same legends of Aliptsoo, which have become precious cultural assets in this area.
Chinese immigrants began their settlement during the reign of Emperor Kangshi in Ching Dynasty, when six (the five eldest and the youngest) of the nine brothers from the Yang’s family in Longshii County, Zhangzhou, Fujian Province, came to Taiwan with the Yang clan for colonization. They landed by the mouth of Chiwang River. While other members of the Yang clan stayed at Hsiao Lung (now Chiali Town), the six brothers continued their trip upstream along the Wanli River (now Tsengwen River) before they came to Shitsailai and landed there. The eldest five brothers stayed at Neichung, while the youngest brother stayed at Shitsailai. For this sake, the Yang’s family in Danei and the Yang’s family in Chali-Baido became the most common surname in the second district.
The eldest of the Yang brothers was called Nei Yang, living in the village called Neichung, which means the "inner village.” The youngest brother was called Shi Yang, who set up his settlement by the bank of Tsengwen River, where flood could turn the place into a “Lai” (flooded) land—the so-called “Shitoulai.” When people asked Shi Yang where he was going, he would said that he was going to “Da-Nei’s Place” (Big brother Nei’s place). Over time, the village Neichung was called Danei.