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Pinghsi is located in a remote mountain area near Taipei. It developed slowly and was not very reachable. Originally inhabited by indigenous people, the region was later developed by Han settlers who were often the victims of murder and robbery during earlier times.
Since access to the region was inconvenient, these pioneers came up with the idea of releasing "sky lanterns" to let others know that they were safe and sound. Through the years this practice evolved into a popular cultural tradition celebrated annually during Lantern Festival.