The Lower Triassic Montney Formation was deposited in a west-facing, arcuate extensional basin, designated the Peace River Basin, on the northwestern margin of the Supercontinent Pangea, centred at about 30 degrees N paleolatitude. At least seasonally arid climatic conditions, dominance of northeast trade winds, minimum fluvial influx, offshore coastal upwelling, and north to south longshore sediment transport affected Montney sedimentation. Paleostructure, particularly highs over underlying Upper Devonian Leduc reefs and lows associated with graben trends in the Peace River area, strongly influenced Montney depositional and downslope mass-wasting processes. A wide range of depositional environments in the Montney is recorded by facies ranging from mid to upper shoreface sandstones, to middle and lower shoreface HCS sandstones and coarse siltstones, to finely laminated lower shoreface sand and offshore siltstones, and to turbidites. Dolomitized coquinal facies occur at seven stratigraphic horizons in the Montney. Some coquinas are capped by karst breccias and coarse-grained aeolian deflation lag sand residues indicating subaerial exposure. The Montney has been divided into three informal members that have been dated by palynology and compared with global Early Triassic sequences. The subdivisions are: the Lower member, of Griesbachian to Dienerian age, correlated with a third-order cycle; the Coquinal Dolomite Middle member, of mixed Dienerian and Smithian ages; and the Upper member, of Smithian to Spathian age, correlative with two, shorter-duration third-order cycles. A forced regressive wedge systems tract model is adopted for deposition of the Coquinal Dolomite Middle member and for turbidites in the Valhalla-La Glace area of west-central Alberta. With this model, coquinas and turbidites accumulated during falling base level to lowstand, with a basal surface of forced regression at the base of the coquina and a sequence boundary at the top of the coquinal member. This is supported by the evidence for subaerial exposure and maximum lowstand at the top of the coquina. Very limited grain size distribution in the Montney, dominantly siltstone to very fine-grained sandstone, but often very well sorted, is interpreted to reflect an aeolian influence on sediment source and transport. High detrital feldspar and detrital dolomite in the Montney are consistent with (but not proof of) aeolian source from an arid interior, as is high detrital mica content in finer size grades. Extensive and often pervasive dolomitization, and early anhydrite cementation within the Montney, are also consistent with an arid climatic imprint. As new exploratory drilling continues to reveal the wide range of facies in the Montney, it adds to both the complexity and potential of this relatively unique formation in western Canada.