Pam C.
Yelp
We came to light a lantern here and it was a really fun experience. The town is pretty small and pretty far out from the city center, but it's very touristy. Our impression was that most people came here to light large lanterns to release into the sky.
You don't have to walk far from the train station - when you get out of the train, walk back towards the direction the train came from, along the tracks, for maybe 5 minutes. Small booths line the railway tracks, selling large, 5 foot lanterns that feel like they're made of some kind of thin plastic. You can pick various colors (when we were there, prices were 150NT$ for 1 color, or 200NT$ for 4 colors) and decorate the lantern with black ink and calligraphy brushes . Most people write their wishes and some fortuitous writings on their lantern. The shops are all pretty much the same - same colored lanterns, same product, same prices - so no need to shop around and just pick one that seems the least crowded. Most of the small booths will also sell a bunch of lantern miscellanea.
Once you're done decorating, someone from the particular booth you're at will light the lantern for you on the railroad tracks (seems kind of dangerous...). The staff will help you take pictures from all angles, and then you can release your lantern into the sky and watch them float. Occasionally a train will come and everyone will clear the tracks. The staff seem to have the train schedule down so they will give you ample warning so you don't get run over while releasing your lantern.
We came at night but it seems like there's a couple more things to do during the day here - they also have bamboo painting where you can write a message on bamboo and hang it on a wall. Otherwise, there's not too much here. There's a few convenience stores if you need to hydrate, and a couple of small restaurants.
If I remember correctly last train is around 9pm, or even a little before, so this is by no means a late night kind of activity. Overall it was a super fun experience, and I would definitely recommend it to tourists in Taipei.