This paper presents 2,000 years of settlement and land use within the Lake Pátzcuaro Basin, Mexico. Three findings challenge the conclusions of previous research. We show (i) that initial land degradation was caused by settlement, not by agriculture; (ii) that population density inversely correlates with erosion; and (iii) that land degradation was associated with European Conquest but not from the introduction of the Euro-agro suite. Instead, demographic collapse caused by European-introduced disease prevented human-generated landscapes from being maintained, resulting in widespread degradation. These findings support the use of indigenous landscape technology for modern conservation if past failings can be resolved.