Early human habitation of the arid to semiarid Central Iranian Plateau was strongly connected to the availability of water and associated natural hazards, such as flooding and drought events. In this geoarchaeological study, we focus on the occupation at the prehistoric site of Ajor Pazi within the formerly active fluvial environment of the Varamin Plain. Through radiocarbon and luminescence‐dated sediment cross‐sections, we apply multivariate statistics to sedimentological characteristics of bulk samples collected during a rescue excavation in 2018. Based on facies interpretations, we differentiate depositional processes and present their implications for the environs of Ajor Pazi. Our results show evidence of settlement activities between 6.4 and 5.6 ka cal B.P. (4.4–3.6 ka cal. B.C.E.). Phases of reduced geomorphodynamics can be distinguished when soil‐forming processes take place. Our findings provide insights into the hitherto scarcely explored Transitional Chalcolithic II period during which the site of Ajor Pazi emerged and began to shape its environs.