Using empirical data from archival research and rural fieldwork in Chipata district (former Fort Jameson district) in Zambia, this article explores historical processes shaping smallholders’ contemporary livelihood situations. Contemporary issues such as food insecurity, environmental degradation, lack of markets and inputs are investigated from a historical perspective. The article highlights colonial policies as decisive in shaping the physical, social and economic landscape of the study area. Policies such as the creation of native reserves, land alienation and European settlement, taxes and market regulations had a deep impact on smallholders’ livelihoods and are to a large extent still influencing the study area. Furthermore, it is suggested that livelihood diversification among smallholders in the study area is a contemporary expression of a historical process of semi-proletarianisation, rather than a response to postcolonial policies, which is generally suggested in the literature. Findings show that the ‘othering’ of African smallholders during the colonial period has been reproduced into present policies in the study area. Overall, the article argues that research on rural livelihoods gain from adopting a historical perspective; in understanding the long-term impact of colonial rule and in understanding of how postcolonial policies are formulated and by what impact they are implemented.