Lijiang, an ancient town in southwest China's Yunnan Province, has won UNESCO's 2007 Award of Merit for its restoration of ancient buildings, UNESCO official Richard Engelhart announced in the town, on Monday.

A panel of international conservation experts noted that the high-degree of verisimilitude demonstrated in Lijiang's restoration showed effective government funding. It also provided an inspiring example for ancient towns to retain their heritage, which is endangered by excessive numbers of tourists and urban development.

Lijiang, listed in UNESCO's "World Cultural Heritage", had completed restoration of 299 households and 236 traditional complexes since 2003, said He Shiyong, chief of conservation and management bureau of Lijiang Ancient Town.

The result of the award came out in a UNESCO regional meeting in August and the ceremony held on Monday was its official acknowledgement to the town, said Engelhart.

The other three Awards of Merit include Bonython Hall (Adelaide, Australia), Little Hong Kong (Hong Kong SAR, China) and the Astana of Syed Yahya (Skardu, Pakistan).