Beijing will take more than half of its three million cars off the roads for August's Olympic Games to guarantee air quality and improve traffic flow.
Beijing held a four-day test using similar restrictions in August last year, during which traffic conditions on the capital's roads improved considerably.
Xinhua quoted Beijing vice mayor and NPC deputy Ji Lin on Friday as saying "Automobiles, excluding taxis, buses and emergency vehicles, are to stay off the roads every other day in accordance with the even and odd numbers on the license plates."
Ji Lin also said there would be compensation, but exact levels were still being discussed.
Another Beijing vice mayor, Liu Jingmin said that the traffic measure would not be taking place before June.