Xicheng is located immediately west of the Forbidden City. Some of the most extensive of Beijings old hutongsTraditionally the Chinese urban neighborhoods of rich and poor alike were laid out in quadrangles called siheyuan or 'four-sided, enclosed courtyards'. As is implied by the name, these siheyuan consisted of four inward facing buildings around a central courtyard. In ancient times they were laid out according to feng shui principles with the entrance gate in the southeast or 'wind' corner and the main building of the house facing south. The alleyways created by several siheyuan sitting side by side were called hutongs. are found in this sector. But along with this rapidly disappearing piece of China's history, the district also contains what many consider to be the most beautiful lakes in the city: Beihai Lake, once admired by Marco Polo, and Xihai, Houhai, and Qianhai, known as the "Back Lakes." The lakes are near some lovely old temples and the lavish grounds of Prince Gong's Mansion. During the Yuan, Ming and Qing Dynasties, Xicheng comprised the western half of the capital. It was home to the emperor's palace, the main commercial district, and was the final stop on the Grand Canal.

Today, Xicheng is spreading farther west, beyond its boundaries of dynastic times. It has become the home of Zhong Nan Haithe off-limits central government compound otherwise known as the new Forbidden City. But in addition Bei Hai GongyuanBei Hai Park and the Bai Ta Sithe White Dagoba Temple are found here. As has been the case in past times, the area is still a popular place to live among writers, musicians, and foreigners who have come to teach in Beijing.