Located 2 km west of Longsheng town, the village is named after the waterfall that runs down from the mountaintop resembling a long silver chain from afar.

It is said that the village was founded during the Tang-Song dynasties and gained its fame due to the hard work of the later generations of the Dong people. In 1737 during the reign of Emperor Qianlong of the Qing dynasty, Wu Jinyin, the 82nd chief of Yinshui Dong Village, led the Dong people to rise in rebellion with the support of the Zhuang, Miao and Yao peoples against the Qing government. Shocked and fidgeted, Qing government hastily sent troops from the neighboring provinces to put down the rebellion. After the failure of this rebellion, the village moved to another place and the original village became abandoned.

In recent years, with the development of local tourism, Dong people were invited to return their home village with 101st village chief of the Wu clan.

In this village, you can see drum-tower and Wind and Rain Bridge, which is a unique complex acting as bridge, pavilion as well as corridor simultaneously.