Take a train to Badu Train Station or Ruifang Train Station and then transfer to Pingxi Branch Rail Line to Pingxi. Note that the Pingxi line in particular will be overcrowded on festival days and you may need to find alternate transportation.
From downtown Taipei, head eastwards on road 106. It takes about 40 to 50 minutes to reach Pingxi. Directions are clearly marked on road signs in English and Chinese. Roads might be blocked during the Sky Lantern Festival, requiring drivers to park far outside (when coming from Taipei, near the No. 5 Highway) and changing to public buses.
Pingxi Train Station. Most visitors come to Pingxi for the train station and its surrounding area. Colorfully painted trains make a brief stop here a couple times per hour. It's possible to walk on the tracks.edit
Old Street. Pingxi Old Street has tea shops, cafes and various street food vendors and is located right next to the train station.edit
Sky Lantern Festival (平溪天燈節). Every read during Chinese New Year, the Sky Lantern Festival will take place in Pingxi and draws massive crowds. Dates change every year and more information can be found online. Due to the crowds, roads might be blocked for private cars during that time!edit
Fly a Chinese Sky Lantern. Sky Lanterns are available for sale all over Pingxi. Visitors usually write wishes or blessings on the lanterns with provided brushed and ink and the vendor will assist in flying the lantern.100-200 NT$. edit