Siyuan Pass is located on the 45km point of Provincial Highway 7A in Datong Township of Yilan County, 1,948 meters above sea level, near the watershed between Lanyang Stream and Dajia Stream, which is also the lowest saddle point where Nanhu Dashan Mountain Branch and Xueshan Mountain Range meet. It is often foggy and misty.
During the Japanese occupation, the Government-General in Taiwan began to build the Pyanan Historic Trail in 1918 for the purpose of transportation and management control. It stretched from Zhuoshui in the north to Wushe in the south. The total length of the trail is about 120 km. After the war, the National Government built industrial roads and the Central Cross-island Highway, which replaced the Pyanan Historic Trail.
Since the Pyanan saddle was the water source for both Lanyang and the Dajia Stream, the area was named Yingshui Siyuan, which conveys the meaning of "When you drink from the stream, you remember the source". Therefore, the pavilion was set up to commemorate the water source.
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