The Water and Fire Cave is about one kilometer south of Biyun Temple. According to the laws of nature, the Water and Fire Cave should not exist. However, the geological structure of this area is unique, and between the precipices there is a natural gas emission. After being lit, the flame will never go out. Water springs also gush out of the crevices in the precipices, creating the Water and Fire Cave’s unique natural landscape of "fire within the water, and water within the fire".
A legend is associated with the Water and Fire Cave, which claims that long ago, the fire dragon and the water dragon had a disagreement, which resulted in a combat to see who would win. Both were defeated: The fire dragon became fire, and the water dragon became water, creating the unique Water and Fire Cave.