The area between the western wall of the old city and the Ping River is where many of Chiang Mai's hotels are located, as well as the city's famous Night Bazaar. The river is connected to the old city by Tapae Road, which is the closest thing to a Main Street that Chiang Mai has. The road is lined with souvenir shops, restaurants and guest houses as well as a few banks, temples and some designer boutiques.
Down near the river at the base of Tapae Road is the very green Governor's Mansion, now used mostly for ceremonial functions.
North of Tapae Road, running along the river, is Wororot Market where you can buy fresh flowers, vegetables, fruits, meats and just about everything else you can imagine.
From the market, you can cross the river on a footbridge to Wat Gate and the river front shops along Charoen Rat Road.
The area between the old city and the Ping River is perhaps the most 'central' location to base yourself when visiting Chiang Mai. From around here, you can walk to most of the sights of the city. There are a wide range of hotels and prices in this area, from posh little boutiques to high-rise tourist class hotels. I've selected a few places for you to consider, listed below, based on past experience and recommendations from trusted travelers.
The east bank of the Ping River laid idle for many years, thankfully escaping much development. In the 1990s it began to be rediscovered, first by restaurants taking advantage of the river views, and then by designer shops.
Old shop-houses along the Ping River Because is was seen as too out of the way during the initial years of Chiang Mai's tourist development, the area still has many old shop houses, many of which are around 100 years old.
The area around Wat Gate is home to several small hotels and nice guest-houses. The advantage of this area is that it's quieter and less 'touristy' than the night bazaar area across the river, yet thanks to a footbridge in front of Wat Gate, you can easily walk to the bazaar area for shopping and dining. The area around the temple also has several nice riverside restaurants of its own.
The rather Burmese styled pagoda of Wat Saen Fang Along Tapae Road, you'll notice a pair of nagas (dragon-like serpents) lining a narrow lane. Following the lane away from the busy street will take you to the quiet compound of Wat Saen Fang.
The temple displays many Burmese details, such as in the shape of the highly decorated chedi with its rainbow of mirrored tiles, or the guardians on the roof of the ordination hall (ubosot).