Two modern fluvial‐aeolian depositional systems (Great Sand Dunes National Monument, Colorado and the Mojave River Wash, California) are remarkably similar in spite of different climates, sizes, fluvial sediment textures, and relative directions of aeolian and fluvial transport. Dune growth and migration, and deflation of blowouts create 8–10 m of local relief in unflooded aeolian landscapes. There are six prominent fluvial‐aeolian interactions. (1) Fluvial flow extends into the aeolian system until it is dammed by aeolian landforms; (2) interdune areas (overbank‐interdunes) upstream of aeolian dams, and alongside channels are flooded; (3) water erodes dunes alongside channels and interdunes; (4) flood waters deposit sediment in interdune areas; (5) fluvially derived groundwater floods interdunes (interdune‐playas); (6) wind erodes fluvial sediment and redeposits it in the aeolian system. Unique and characteristic sediments are deposited in overbank‐interdunes and in interdune‐playas, reflecting alternate fluvial and aeolian processes and rapidly changing flow and salinity conditions. These fluvial‐aeolian interdune deposits are characterized by irregular, concave‐up bases and flat upper surfaces containing mudcracks or evaporite cement. Characteristic low‐relief surfaces form in aeolian systems as an effect of flooding. Fluvial deposits are resistant to aeolian deflation. Aeolian sand is preserved when flood sediments are deposited around the bases of the dunes. Thus repetitive fluvial and aeolian aggradation tends to be ‘stepwise’ as interdune floors are suddenly raised during floods. The effects of flooding should be easy to recognize in ancient aeolianites, even beyond the area covered with overbank muds.

An understanding of fluvial‐aeolian deposition derived from modern case‐examples in a previous study is applied to the Permian Cutler Formation and Cedar Mesa Sandstone on the Colorado Plateau. These formations supply an excellent three‐dimensional exposure of intertonguing fluvial and aeolian strata. Four distinct facies associations form the bulk of the Cutler Formation and Cedar Mesa Sandstone: (1) aeolian dune deposits; (2) wet interdune deposits; (3) fluvial channel deposits; and (4) overbank‐interdune deposits. In addition, two distinctive types of erosion surfaces are found within the Cutler Formation and Cedar Mesa Sandstone: pebble‐ to granule‐rich erosion surfaces (aeolian deflation surfaces) and flood surfaces. Fluvial and aeolian intertonguing result in extensive tabular sheets of aeolian sandstone separated by flood surfaces and overbank‐interdune deposits. Fluvial channels are associated with the deposits overlying flood surfaces and are incised into the underlying aeolian sandstones. Overbank‐interdune deposits and wet interdune deposits cover flood surfaces and intertongue with overlying aeolian sandstones. The primary characteristics of ancient fluvial‐aeolian deposition are overbank‐interdune deposits and pronounced extensive erosion surfaces (flood surfaces), which are parallel to underlying fluvial sandstones and thus trend parallel to the palaeoslope and palaeohydrological gradient.