The evolution of urban functional land is the spatial reflection of urban functional agglomeration and diffusion, it can profoundly reveal the internal characteristics of urban expansion. This paper applies spatial analysis tools of GIS to analyze the spatial evolution characteristics and driving factors of residential land, industrial land and public service land in Zhangye City since 1981. It provides effective guidance for the sustainable development of Oasis city’s space. The results show that: 1) The urban residential land and public service facilities land have been gradually increasing, and there is a trend of spatial evolution that is spreading from center to periphery. However, industry and storage land increased first and decreased after, and it is from disperse to agglomeration in spatial. The industry and storage land gather in the northeastern industrial park. 2) Zhangye city should break through the development model of single core and promote the compact development of urban space to form the full-featured urban spatial structure in the future.