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The name of Ban Chaiyo dates back to when King Naresuan the Great and his brother, who later became King Ekathotsarot, defeated the King of Lan Na and Burmese soldiers in this area.
By the end of the -14th century Nan was one of the nine northern Thai-Lao principalities that comprised Lan Na Thai (now Lanna) and the city state flourished throughout the 15th century under the name Chiang Klang (Middle City), a reference to its position roughly midway between Chiang Mai (New City) and Chiang Thong (Golden City, which is today's Luang Prabang).