Shui community is located on the west side of the Dàyàn Tunnel on the Zhongtan Highway, surrounded by mountains on all four sides. From a bird's-eye view, the terrain resembles a blooming lotus flower valley, with homes scattered at the base of the lotus heart and petals, and a picturesque basin landscape. There are two theories behind the name "Shèshuǐ": one is that the area's mountains often seep out springs, and "seep out water" is called "leak water" in Taiwanese; the other is that the springs in this area did have a bitter taste, hence the name "Shèshuǐ".
The Shèshuǐ community was initially known for growing rice, but with the rise of " Assam black tea" in the 1940s, villagers switched to growing black tea, which became a major industry in the Yúchí region. The soil in the Shèshuǐ basin is suitable for pottery-making, and there used to be a "Huí zǐ kiln" that produced daily ceramic products, but it declined and closed down after the introduction of plastic products. After the 921 earthquake, with the help of the National Handcraft Research Institute, the residents rebuilt the kiln and established a community pottery classroom, using the locally produced "white fairy soil" for pottery creation and attracting tourists to experience the fun of pottery-making.
In 2007, Shèshuǐ community stood out from the highly competitive national rural and fishing village selection and was listed as one of the top 10 classic rural and fishing villages. Today, Shèshuǐ has become a great place to "drink black tea, play with clay, and experience nature". Surrounded by mountains, it boasts undeveloped valleys, waterfalls, and tree-lined trails with different sceneries at different times of the day. Combining bed and breakfast, forest natural environment, and plant explanations, it has developed into a forest community and become a popular leisure destination for Taiwanese people.