Pingyao is a famous historic cultural city of China and a world cultural heritage site. Located in the center of Shanxi Province, it's 90 kilometers south of Taiyuan on the Fen River.

People lived in the vicinity of Pingyao during the New Stone Age. According to legend, an official from the village became the Emperor Yao and gave the town the names of Gutao and Pingtao. This area, during the Spring and Autumn Period (770-476 B.C.) belonged to the Jin Kingdom and during the Warring States Period (475—221 B.C.) it belonged to the Zhao Kingdom. Pingtao became a city and the seat of the county government in the Qin Dynasty (221-206 B.C.). The name of the county changed several times, from Zhongdu to Jingling in the Western Han Dynasty to Pingyao County in the Northern Wei Dynasty. Its long period as a county government seat has left Pingyao with a 2,700-year history of politics, culture and economy, as well as numerous historic buildings and sites. Ninety-nine of these are under government protection, including three under national protection: Zhengguo Temple (Five Dynasties to Ming Dynasty), Shuanglin Temple (Ming Dynasty), and Pingyao Ancient City (Yuan to Qing Dynasties). The city is laid out according the to the system of the Han nationality.

There are two historical features of Ming and Qing cities. One is that they were laid out according to strict protocol, with more important cities being larger in area. The kingdom's capital occupied the largest area, of 9 square li (two li equals one kilometer), the capitals of dukes were 7 or 5 square li and seats of county governments, such as Pingyao, occupied 3 square li. The other is that the layout of Pingyao Ancient City reflects “recognizing right directions” in both the entire city and the courtyards. They reflect the harmony of “humans, universe and buildings.” That is to say, they reflect the idea that “people and heaven combine into one,” This relationship is reflected in the layout and formula of the traditional system and customs of the Han Nationality: five directions (north, south, east, west, and center) and four shapes, giving prominence to the center, strengthening the axis, and that facing south is honorable.

During the Ming and Qing Dynasties, merchants organized commercial groups that engaged in business nationwide, with Shanxi Province having some of the most important ones and Pingyao as the center. The Xiyucheng dye store on Xi Da Jie dealt in remittance and in 1823 became the first draft bank in China, dealing in bank drafts rather than in silver or gold money. Known as Rishengchang (Sunrise Prosperity), it was the cornerstone of modern Chinese banking.

During the hundred years that draft banking lasted in China, Pingyao became the hub as other local merchants opened similar banks. Branch banks were soon set up in major cities in China and in Asia, leading to great prosperity in Pingyao, with its subsequent economic, cultural and societal development. Courtyards became more ornate, streets, shops and stores were developed, enlarged or improved, and its products, such as lacquer ware and clay sculptures, became well known.

There are many traditional residences and commercial courtyards in Pingyao Ancient City, 3,797 of which are protected and more than 400 of which are intact. Not only do the residences in Pingyao demonstrate Shanxi's history and culture, but this large number is valuable for studying its history, folk customs, architecture, and art, as well as still serving as homes and shops of local people.

Pingyao Ancient City was proclaimed by the State Council as a national famous historical and cultural city in 1986. In 1997，Pingyao Ancient City were formally confirmed“World Culture Heritage”by UNESCO，and was listed in World Heritage List.