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The Blues went into the break two-nil down following a first half brace from Jarrod Bowen.
He opened the scoring in the 24th minute after rounding Ederson, then doubled his side's lead after firing a low drive just before the interval.
West Ham ran Man City ragged in the first half, but Pep Guardiola's team fought back in the second half.
Jack Grealish reduced the deficit with a strike that took a deflection off Craig Dawson.
The visitors made it 2-2 after Vladimír Coufal headed home into his own net after Riyad Mahrez curled an inviting ball into the box.
Man City had the chance to complete the comeback when they were awarded a penalty following a VAR review.
But Mahrez's spot kick was saved by Lukasz Fabianski.
Man City increase their lead over Liverpool to four points and can clinch the title at home to Aston Villa next Sunday.
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