The degradation of the steppe ecosystem in Xilingol League in the Inner Mongolia Autonomous Region of China could only be reversed if the intensity of use were reduced, but there have been no studies of how this might be achieved. An investigation of the relationship between Xilingol Biosphere Reserve (XBR) and Xilinhot City explored how greater urbanization might aid restoration of degraded steppe. Experimental data indicate that 72% of the lands have been degraded since 1947, and the relationship between Xilinhot City and the XBR has been reciprocal. The XBR can provide materials such as food, water and a healthy environment for Xilinhot City and Baiyinxile Town, and the high pasture pressure can be reduced by urbanization. The cities could host a substantially greater population in a smaller area than at present, which would in turn reduce pressure on the land. Thus, conservation of the XBR, particularly the core zones, could be ensured through an urban model, which could also provide development opportunities for people moving into conurbations.