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Petra is adjacent to the mountain of Jabal Al-Madbah, in a basin surrounded by mountains forming the eastern flank of the Arabah valley running from the Dead Sea to the Gulf of Aqaba.

Excavations have demonstrated that it was the ability of the Nabataeans to control the water supply that led to the rise of the desert city, creating an artificial oasis. The area is visited by flash floods, but archaeological evidence shows that the Nabataeans controlled these floods by the use of dams, cisterns, and water conduits. These innovations stored water for prolonged periods of drought and enabled the city to prosper from its sale.

In ancient times, Petra might have been approached from the south on a track leading across the plain of Petra, around Jabal Haroun ("Aaron's Mountain"), the location of the Tomb of Aaron, said to be the burial place of Aaron, brother of Moses. Another approach was possibly from the high plateau to the north. Today, most modern visitors approach the site from the east. The impressive eastern entrance leads steeply down through a dark, narrow gorge, in places only 3–4 m (10–13 ft) wide, called the Siq ("shaft"), a natural geological feature formed from a deep split in the sandstone rocks and serving as a waterway flowing into Wadi Musa.