The history of modern Urgench is inextricably linked with the fate of the ancient city of Gurganj (Konye-Urgench). The current city was founded in the second half of the 17th century, approximately in 1646, on the initiative of the Khan of Khiva, Abulghazi. Its emergence was the result of forced migration: the new settlement was initially named "Yangi Urgench" (New Urgench) to emphasize continuity with the great history of the ancient capital of Khorezm.
The formation of the city in a new location was dictated by a combination of critical natural and economic circumstances:
- Geographical factor: The main reason for the city's founding was the change in the course of the Amu Darya river. When water ceased to reach the old city, the population was forced to relocate closer to new water arteries for survival.
- Trade: Urgench quickly restored its status as a key transit point. It occupied a strategic position on the trade routes of the Khanate of Khiva, connecting the region with neighboring states.
- Security: The city was built as a fortified settlement capable of protecting residents and the wealth of merchants amidst the region's instability.
From its first years of existence, Urgench developed as a center of craftsmanship and commerce, inheriting the cultural code of its ancestors. The economic life of the early city had its own characteristic features:
- Craftsmanship: The settlers preserved the unique technologies of Khorezm masters. Pottery, weaving, and jewelry art flourished in the city.
- Irrigation farming: A complex system of canals was created around the city, allowing the surrounding lands to be turned into fertile gardens and fields, despite the arid climate.
- Architectural appearance: Early Urgench was a classic Eastern fortress city with clay walls, bustling bazaars, and block-based development (mahalla), where community life was regulated by age-old traditions.