There is growing recognition in both evolutionary biology and anthropology that dispersal is key to establishing patterns of cooperation. However, some models predict that cooperation is more likely to evolve in low dispersal (viscous) populations, while others predict that local competition for resources inhibits cooperation. Sex-biased dispersal and extra-pair mating may also have an effect. Using economic games in Sino-Tibetan populations with strikingly different dispersal patterns, we measure cooperation in 36 villages in southwestern China; we test whether social structure is associated with cooperative behaviour toward those in the neighbourhood. We find that social organization is associated with levels of cooperation in public goods and dictator games and a resource dilemma; people are less cooperative towards other villagers in communities where dispersal by both sexes is low. This supports the view that dispersal for marriage played an important role in the evolution of large-scale cooperation in human society.