The Žerotice Formation recognised in a confined area NE–SE of Znojmo represents a basal member of the sedimentary succession of the southwestern margin of the Carpathian Foredeep in Moravia (Czech Republic). Two facies associations were recognised within the formation. The first one mantles the pre-Neogene basement with an irregular unconformity, reflects arid climatic conditions and deposition of episodic shallow, high-energy stream flows and/or mass flows (alluvial to fluvial deposits). The second facies association is interpreted as lagoonal to distal flood plain deposits. The barren unfossiliferous deposits of the Žerotice Formation are covered by nearshore marine Eggenburgian deposits. The boundary between these deposits represents a sequence boundary (i.e. the basal forebulge unconformity). Detailed provenance studies of successive beds below and above this sequence boundary showed differences in the source area and paleodrainage. Both the local primary crystalline rocks (Moravian and Moldanubian Unit, Thaya Batholith) and older sedimentary cover (especially Permo–Carboniferous sedimentary rocks) form the source of the Žerotice Formation. All these geological units are located only a few km away from the preserved areal extent of the deposits of the Žerotice Formation (short transport and a local source). The source areas of the overlying marine Eggenburgian beds are located far more to the W and NW in the Moldanubian and Moravian Units (longer transport, extended source area). Local confined preservation of the Žerotice Formation is preliminarily explained as connected with a tectonically predisposed paleovalley.