Since 90 Ma, the nonmarine Salar de Atacama Basin has been the largest, deepest, and most persistent sedimentary basin of northern Chile. Integration of 200 km of two-dimensional seismic reflection data with surface geological data clarifies Oligocene and Neogene evolution of the northern part of the basin. A normal fault with 6 ¿ 1 km of vertical separation controlled the western boundary of the basin during the accumulation of the Oligocene--lower Miocene Paciencia Group. The combination of this structure, a similar one in the Calama Basin, and regional structural data suggests that localized extension played an important role within a tectonic environment dominated by margin-perpendicular compression and margin-parallel strike-slip deformation. Seismic data substantiate the surface interpretation that much of the Cordillera de la Sal ridge resulted from diapiric flow of the Paciencia Group. Diapiric flow initiated during the late early Miocene or middle Miocene, associated with a deep reverse fault.