This is a road-side turn out near the summit of the road between Lhasa and Yamdrok lake.
There are several vendors selling their wares. Prices here are surely better than you will find in Lhasa, however, selection is quite poor. We bought a nice rustic looking prayer wheel at about half the cost of something similar in Lhasa. Also you will see several Tibetan Mastiff dogs on display for you to take photos with (for a fee of course)
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