Over one hundred artifacts, including shards, chopped wood, bronze and iron ware debris as well as footprints, have been discovered during archaeological investigations at and around the central Taklamakan Desert Yuansha Site (38°52′N, 81°35′E). Dating (14C and OSL) and landform study show that the present-day dry Keriya River once sustained an oasis human settle- ment in 2.6 ka BP, historically falling into the Spring and Autumn Period (716-475 BCE) of Chinese history. The chronology and archaeological interpretations also show that some 400 years later, the local Keriya River channel had shifted 40 km southeast to sustain a Western Han (206 BCE-25 CE) Wumi settlement at the Karadun site. In the meantime, river-channel migration had allowed reoccupation of a site west of Yuansha City around 1.9 ka BP (abandoned again by 1.6 ka BP). The remains' chronology shows that this site was affiliated to Wumi culture and Eastern Han (24-220 CE) dynasty rule. Palaeoclimatic records indicate that the migrations of the river and oasis settlers between 2.7 and 1.6 ka BP were coeval with Central Asian climate changes. Yuansha City was built just after the end of 2.8 ka BP glacier advances in western China, suggesting that release of more water during the subsequent glacier recession may have facilitated oasis development such that Iron Age European peoples could settle in the Tarim Basin. As shown from analysis of archeological remains, not only at Yuansha but also in other ancient cities in the Tarim such as Loulan and Jingjue (Niya), conditions around 1.6 ka BP were dry enough to cause oasis decline. Thus, the results reported here enhance our knowledge about environmental changes and their effects on human activities and cultural evolution in western China and will stimulate further interdisciplinary studies of landscape and oasis history in the Tarim Basin.