This funky little village (都蘭; Dūlán) is the best spot along the east coast to base yourself for an extended stay. There's good food, a range of accommodation, and a boatload of interesting characters. You'll meet Taiwanese big-city kids who've dropped out of the rat race to open a guesthouse, expats who've done the same, artists who've set up studios in an abandoned sugar factory, and musicians who make the town buzz on weekends.
The Dulan area has been inhabited for thousands of years, as evidenced by the stone coffins and other archaeological ruins of Beinan culture in the hills west of town. These days it has one of the largest Ami settlements along the east coast, and the indigenous presence in the arts scene is strong.
Dulan is in essence a couple of blocks on either side of Hwy 11, and a few backstreets winding into the hills.