It was originally constructed in 970 by the Wuyue Kingdom, destroyed in 1121, and reconstructed fully by 1165, during the Southern Song dynasty (1127–1279).
The name Liuhe comes from the six Buddhist ordinances and it is said that the reason for building the pagoda was to calm the tidal bore of the Qiantang River and as a navigational aid.
The pagoda is octagonal in shape and some 59.89 metres (196.5 ft) in height, it also has the appearance of being a thirteen-story structure, though it only has seven interior stories.
There is a spiral staircase leading to the top floor and upon each of the seven ceilings are carved and painted figures including animals, flowers, birds and characters.
Being of considerable size and stature, it actually served as a permanent lighthouse from nearly its beginning, to aid sailors in seeking anchorage for their ships at night (as described in the Hangzhou Fu Zhi).