AbstractThe population structure and water relations of Artemisia ordosica were studied at different stages of the sand dune fixation process. Vegetation coverage and biomass increased as the sand dune fixation process progressed. In contrast, individual growth rate decreased in the late fixation stage. On fixed sand dunes the modal age of A. ordosica plants was higher and seedlings or saplings were rearely observed. On active sand dunes, settlement of seedlings was regulated by sand mobility; that is, seedlings were observed only when sand mobility was below 10 cm per year. Leaf transpiration was highest in active sand dunes. Stand transpiration in fixed sand dunes was lower than in semi‐fixed sand dunes. These differences in transpiration were related to a decrease in soil water availability, which was affected by the increase in the aeolian fine soil component during the course of sand dune fixation. The reduction in soil water status and the cessation of sand movement were considered to be important factors in the decline of the Artemisia ordosica community.