Pingyao, located in the center plain of Shanxi province, 108 km from Taiyuan, the capital of the province.
Pingyao has a continental climate with cold winter and hot summer. In winter, the wind coming from the north is usually strong and dusty. The temperature varies greatly between day and night
Tourism has become its major industry since 1990's. The local government relocated more than 20,000 residents out of the old town from 2002-2006 for the better protection of the town. Thirty polluting factories around the city have been closed, with 30 chimneys and more than 400 coke furnace being demolished at the same time.