This mid-sized, prosperous provincial capital is rarely visited by backpackers, but is creeping onto bus tour itineraries. Phayao is popular with Thais who flock here from as far away as Bangkok for its scenic location on the edge of the beautiful Phayao Lake.

Believed to have been first built by the King of Chiang Saen around the turn of the 12th century, Phayao today is just another ordinary urban centre. The city is very laid-back and peaceful, while the lakeside strip of Chai Kwan Rd is lined with bars, restaurants and nightclubs set against ornate gardens and parks full of picknicking Thais.

Lakeside breezes help keep the city cool and while there's little to actually do in Phayao, the sunset views across the lake to the distant hills from one of the excellent restaurants make at least an overnight stop here well worthwhile.

Phayao, depending on route taken, is 600-700 km from Bangkok, 90 km from Chiang Rai, 140 km from Chiang Mai and 137 km from Nan. This positioning makes Phayao a good choice to break the journey of those travelling between Nan and Chiang Mai or Chiang Rai.