This chapter examines the complex relationship between humans and their environment in prehistoric times, focusing on the West Liao River basin as a case study. It emphasizes the central role of settlements in human survival and productivity, highlighting how resource availability and fertile land facilitated early agriculture. It explores how the basin’s diverse landscape influenced the distribution of prehistoric cultures such as Xinglongwa, Zhaobaogou, Hongshan, Xiaoheyan, and the Lower and Upper Xiajiadian. Using GIS technology and archaeological surveys, the analysis reveals settlement patterns concentrated at elevations between 400 and 700 m across different periods. The discussion underscores the critical role of water in sustaining life in the semi-arid climate of the West Liao River basin, explaining how topography and elevation impact water distribution, vegetation, wildlife, and ultimately, human settlement choices.