By surveying the morphologic evolution of the two county-level cities around Beijing, Sanhe City and Xianghe County, since the reform and opening up of China, it shows that the evolution of urban system and land-use of small town around Beijing has gone through three similar stages. The evolution results from the interaction between many subjects, including Beijing municipal government, Hebei provincial government, small town government, town residents, enterprises and developers that expand outward from Beijing. In the end, the paper predicts the future development of the areas surrounding Beijing, and puts forward some valuable suggestions for the development of small towns around Beijing.