Shan State is a state of Burma (Myanmar) bordering China to the north, Laos to the east, and Thailand to the south, and five administrative divisions of Burma in the west. Shan State covers 155,800 km, almost a quarter of the total area of Burma. The state gets its name from the Shan people, one of several ethnic groups that inhabit the area. Shan State is largely rural, with only three cities of significant size: Lashio, Kengtung, and the capital, Taunggyi.