Transit-oriented development (TOD) is advocated by urban planners as a tool to promote transportation and land use integration, and it has especially been applied in new town developments in Chinese cities. Since 2000, urban metro system construction in Beijing has accelerated and many new towns in suburban areas have emerged due to rail transit connections with the central city. This paper is a case study of Yizhuang new town, which is located in the southeast suburban area of Beijing. It explores whether light rail is successful in promoting transportation and land use integration. First, by comparing the land use within a 1 km radius of three rail stations, findings suggest that the TOD model in terms of land use may not be implemented. Second, by tracing land use changes over time, we found that commercial functions are critical to support TOD development. Third, the mismatch of urban functions between low-skilled labor employment opportunities and high-skilled residential neighborhoods emphasizes the failure of planned reverse commuting patterns. In conclusion, our findings suggest that without a proper land use policy, TOD based on light rail only may not be a successful model in the case of Yizhuang new town. The policy implication is that the planning code of land use should be more flexible and adaptable, in order to promote the integration of transportation and land use in a synergetic way.