This paper presents an integrated study of urban spatial expansion in the Hexi Corridor, Gansu Province, China based on TM, ETM remote sensing data in 1987, 1990, 1995, 2000, 2006 and 2011. The study explores the characteristics of urban spatial expansion and dynamic mechanism by using expansion speed index, expansion intensity index, compact index, fractal dimension, and extended flexibility index. We built the index system of influencing factors of urban spatial expansion by using the grey incidence model. The results showed that urban spatial expansion rate in the Hexi Corridor has been on the upward trend since 1987. Expansion intensity showed an obvious upward trend, however, the upward trend varied in different urban areas. In addition, the urban structure was loose relatively, but the urban compactness was more obvious. The urban spatial form tended to be simple, and the urban land use tended to become more intensive. Urban spatial expansion experienced several stages: padding internally, external expansion and padding internally. The main driving factors of urban spatial expansion are not the urban water resources and the oasis scale, but one or several factors such as economy, traffic, population, resource and national policy.