This is Suzhou in Southern China. You probably never heard about Suzhou, but it has population of more than 6 million people. Close to Shanghai is ideal place for daytrip to see old streets and Chinese style gardens.
This canal tour is very popular for local and foreign tourists. You can see local peoples life unfolding along canal. Song is played on the boat as well as other traditional songs. There is also tourist explanation of the houses along the canal (in Chinese).