The evolution of the Martian crustal dichotomy boundary, which separates the southern cratered highlands from the northern lowland plains by 1--3 km of elevation, remains among the fundamental outstanding issues in Mars research. For a study area at Aeolis Mensae we show that fretted terrain formed exclusively in a >2 km thick, late Noachian (~3.7 Ga) sedimentary deposit that overlies the base of an older, cratered dichotomy boundary slope. In this equatorial study area, fretted terrain does not exhibit the debris aprons or lineated valley fills that are attributed to ground ice in otherwise similar, midlatitude fretted terrain in Arabia Terra. The massive deposit of fine sand or loess was probably transported from the north by wind and trapped against the precursor dichotomy slope, producing a similar initial form to the younger Medusae Fossae layered materials that occur east of Aeolis Mensae. Contemporary with the latest Noachian to early Hesperian decline in fluvial erosion, the fretting process likely initiated as the massive layer's indurated surface was compromised by fracture, cratering, or collapse into possible voids. In these depressions, grain impact or contact with water disaggregated the fine sedimentary materials, which were then largely deflated by wind. The fretting process largely ended when liquid water was no longer widely available for weathering during the early Hesperian period, although some degradation of the region by aeolian and slope processes has continued to the present.