The historical city of Tawwaj, in the northern hinterland of the Persian Gulf, has long been one of Iran's most recognized cities. The boom of this city was during the period of Buyids, but then it quickly deteriorated. There is now nothing left of this town except a name in ancient texts and even the ruins of the city are unknown. This article examines the birth and continuity of this city and its deteriorating factors. This study, based on a historical analysis and library resources, shows that two economic components, namely the intermediary trading position of Tawwaj between the Persian Gulf ports and the central regions of Iran, and the production of Toozi linen textiles, were the main contributors to the flourishing of this city in the Buyids era. Studies on the city's downfall also reveal the involvement of human factors alongside natural ones. In this regard, the conflicts on succession of Azod al-Dawlah in Fars, the repeated attacks of Shabankara rulers and Qaramata to the coasts and the hinterlands, and the redirection of maritime trade from the Persian Gulf to Red Sea, as a transnational factor, have emerged in the decline of Tawwaj. Based on these, the evolutions of Tawwaj may be considered as a good example for the impact of changes of trade routes on the human habitat arrangements.