Located in the center of Sun Moon Lake, Lalu Island was called Guanghua Island in the past. Sun Moon Lake is the most famous water reservoir in Taiwan. Lulu Island is known as the island on the water. This area was dwelled by the Shao tribe in the past and the island had been called Lalu until 1946, when the government renamed it Guanghua Island. In the severe earthquake in 1999, Sun Moon Lake reservoir was damaged and a historic site of the Shao tribe was discovered. Thus, in 2000, the island was renamed Lalu again. The Shao tribe considers the island a sacred place and thus tourists cannot visit the island; however, you can still learn about the Shao tribe along the tracks surrounding the lake.
Lalu Island is said to be a sacred place for the Shao tribe. Witch candidates of the tribe would have to come to the island to seek approval of the ancestors' spirits. The witches are in charge of incantation and rituals. The Japanese also left a stone monument, remembering the development of Sun Moon Lake during Japanese occupation.