The South Palisade Gate stands at the southern terminus of the central axis of Weishan Ancient Town, historically known as Menghua City. This boundary marks the transition between the historic old city and the southern outer districts. The town's layout began in the Yuan dynasty, and builders formally reconstructed the brick-and-stone city in 1390, during the twenty-third year of the Hongwu reign of the Ming dynasty.

While military conflicts and time claimed the defensive towers of the east, west, and south gates, leaving only the northern Gongchen Gate and the central Xinggong Tower intact, this southern passage remained. During the Qing dynasty, guards operated a wooden palisade gate and a drawbridge here as defensive outposts. Today, a highly preserved section of the original Ming dynasty city wall stands near the South Gate Pond, where visitors can touch the rough, weathered bricks laid down centuries ago.

The gate aligns directly with Nanzhao Ancient Street, connecting in a single line with Xinggong Tower, Gongchen Tower, and Qunli Gate. Traditional Dali Bai style homes, characterized by timber-frame courtyards and screen walls, surround the area.

During the annual Torch Festival, the street from Qunli Gate to the South Palisade Gate fills with the sound of footsteps, folk costume processions, and crackling torches, carrying the ancient spirit of the town into the modern day.