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In this paper, we summarize the Holocene environmental history of the lower Yangtze region, east China, based on the sedimentary records and microfossil diatom, pollen, fungal and charcoal data that were published in the past two decades. We then examine the linkage between changes in the coastal environment and the development of rice agriculture in the region, with reference to the available archaeological evidence and historical archives. Based on the sedimentary and archaeological evidence, we conclude that during the early Holocene sea-level movements and sedimentary processes significantly changed the region’s landscape from an open, brackish water environment to a largely enclosed, wetland system. This newly established freshwater marsh environment provided a habitat favourable to rice agriculture. The early Neolithic farmers took the opportunity presented to them and started rice cultivation in locations where freshwater wetland systems were established. During the middle Holocene, environmental conditions were largely stable, and the coastal wetlands evolved slowly. Environmental change was only a supportive player in the Neolithic cultural processes, because the Neolithic people were able to adapt to these changes and took advantages of the newly emerging marsh land for food collection and production. Around 4200 years ago, the prosperous Liangzhu society fell, but there is no evidence to suggest the fall was related to a significant environmental change. The coastal environment continued to evolve slowly during the late Holocene. But this period saw rapid technological development in irrigation and flood protection, and the environmental factor was reduced to background noise. Throughout the Holocene, the main strategy taken by the Neolithic people to cope with environmental change was migration to find better food sources. Along with this strategy was the development of technology in landscape management to ensure a more reliable food production in addition to food collection through hunting, gathering and fishing. [ABSTRACT FROM AUTHOR]