The Tibet Autonomous Region is composed of one city and six prefectures, including one city directly under the regional government, 71 counties, and one county-level city. Lhasa, the capital of the Tibet Autonomous Region, is the political, economic, cultural, and communication and transportation center for the entire region. It has a recorded history of more than 1,300 years. Located on the northern bank in the middle reaches of the Lhasa River, a tributary of the Yarlung Zangbo River, the city has an elevation of 3,658 meters. The city, with an area of 30,000 square kilometers, is home to 400,000 people, including 140,000 living in the 51-square-kilometer city proper. Tibetans, Hah, Hui and other ethnic groups live in the city, with Tibetans accounting for 87 percent of the population.

Agriculture and animal husbandry are relatively well developed in the areas surrounding the city proper. A group of vegetable and meat production bases have recently been set up. The region's mainstay industrial enterprises are concentrated in the Lhasa area. There is a network of more than 10,000 commercial outlets in the city.

Great changes have taken place to the city of Lhasa since Tibet's peaceful liberation in 1951, and even more since China's implementation of the reform and opening policy in 1979. The urban area has seen the construction of many new buildings combining traditional Tibetan and modern styles, such as the Lhasa Hotel, the Tibet People's Hall, the Tibet University, the Tibet Gymnasium, the Regional People's Hospital, the Lhasa Cinema, the Potala Palace Square, the Tibet Library, the Tibet Museum and the Lhasa Children's Center. Infrastructure including transportation, telecommunications and energy has developed rapidly. Program-controlled telephones and a satellite communication ground station have already been set up. A region wide highway network centering around Lhasa has been formed. In the urban area the roads are asphalt and there is running water and a sewage system. The 20-to-30-square-kilometer Yangbajain geothermal field, listed as a key State development pilot project, delivers ground surface natural thermal energy as high as 107,000 kilocalories per second. With an estimated 150,000 kilowatts potential, it is the largest geothermal power plant currently under development in China.

Lhasa has more than 200 sites known for their cultural relics. More than 20 of these have already been opened to tourism soon to be joined by another 30. Main tourist destinations include famous structures61ike the Jokhang Monastery, the Ramoche Monastery, the Potala Palace, the Gandain Monastery, the Zhaibung Monastery, the Sera Monastery, and the Norbu Lingka and picturesque scenic spots such as the Nam Co Lake, hot springs at Derzlhom, and the nature reserves in Lhunzhub and Maizhokunggar. The Barkor Street at the center of the old city is a place where tourists can find some of what remains of the city's original appearance. Lined with closely packed shops, it is bustling with activity. An endless stream of pilgrims winds its way around the monastery, passing by handicrafts and other traditional goods spread out for sale to either side.