Formerly called Dutou Street or Shuixian Street, this area was once one of Magong City’s most prosperous thoroughfares in the past. Shuixian Temple is a local religious center. Nowadays, however, the temple is better known locally as “Taixia Guild Hall” because starting from 1875 it was used as a guild hall. “Taixia” refers to a commercial association, or guild, established by merchants trading between Taiwan, Penghu, and Xiamen during the Qing dynasty.

Constructed in 1696, Shuixian Temple is one of Penghu’s four great ancient temples. The building was renamed "Taixia Industrial Association” during the Japanese occupation in 1900. In 1929, it was rebuilt as a three-bayed, two-story building. The first floor served as offices for the Taixia association. On the second floor, Shuixian Temple is dedicated to the five water deities: Dayu, Wu Yun, Qu Yun, Xiang Yu, and Lu Ban. The townhouse-style structure was Penghu’s first two-story temple building. Symmetrical wooden stairways link the first and second floors. The first-floor eaves connect to a four-cornered pavilion, creating a transitional space between the interior and exterior. Look above you: the top of the pavilion is the entrance to the Shuixian Temple on the second floor! Following renovation, however, the deities were moved to the first floor to facilitate worship.

Unlike most temple buildings, the specially designed European-style windows can be raised and lowered, and the imitation triliths (stone columns) and walls were constructed with Penghu's shell-washing sand method. Thus, the building integrates both Western and local architectural styles.