 Formerly both Simao and the surrounding region of Pu'er prefecture played a major role in the historic tea horse trade between Yunnan, Tibet and India, with Simao acting as the southern terminus or starting point for the transport of tea by mule caravan north to Dali, Lijiang and Lhasa.Tea remains a central crop and product of the region.In 2007, the "city" of Simao () changed its name to Pu'er city ().