Founded in 1156 by Rawal Jaisal on Trikuta Hill, the fort at its centre is one of the few in the world still inhabited — several thousand residents live within its walls today, running guesthouses and shops among structures that predate most European cathedrals. The entire old city, fort and havelis alike, is built from the same golden-yellow sandstone quarried locally, a material that turns the whole settlement a deep amber at sunset and gives Jaisalmer its 'Golden City' name, more literal description than marketing phrase.
The city's wealth was built on caravan trade — customs duties on silk, opium, indigo, and brocade moving between India and Central Asia through routes that ran directly past Jaisalmer for centuries. That trade collapsed after the 1947 Partition severed the overland routes into what became Pakistan's Sindh province, leaving Jaisalmer a preserved but economically stranded merchant city until desert tourism revived its fortunes from the 1980s onward. Today the local economy runs substantially on that tourism: camel and jeep safaris into the Thar, desert camps at Sam, and a haveli-and-fort heritage circuit within the city itself.
Jaisalmer's remoteness is worth planning around rather than ignoring. Jaisalmer Airport has limited, seasonal flight connectivity — do not build an itinerary assuming daily service. The railway station connects reliably to Jodhpur, Jaipur, and Delhi via overnight trains, which is how most independent travellers actually arrive. Distances to outlying sights are real: Sam Sand Dunes, Kuldhara, and Desert National Park are all 20 to 45 km out of town, meaning a day given over to desert excursions is a day not spent in the old city, and vice versa.