Its fossils were found in from the early Carnian-age Chañares Formation in La Rioja Province, Argentina .

[1] Chanaresuchus appears to be one of the most common archosauriforms from the Chañares Formation due to the abundance of specimens referred to the genus.

A second proposed species, C. ischigualastensis, was named in 2012 from the late Carnian-age Ischigualasto Formation,[2] was briefly assigned to Chanaresuchus before being moved to its own genus Pseudochampsa in 2014.

[3] C. bonapartei has been reported from the Santa Maria Formation in Brazil,[4] but the Brazilian fossils were given their own genus Kuruxuchampsa in 2023.

[6] A semiaquatic lifestyle similar to phytosaurs and modern day crocodilians has been proposed for Chanaresuchus, as is suggested by the secondary palate and upward facing orbits and nostrils.

However, some evidence, such as a lack of aquatic amphibians found from the Chañares Formation, suggests that the area was relatively dry during the time of deposition.

Theraspids include the dicynodont Dinodontosaurus, and cynodonts such as Probainognathus and Massetognathus, the latter being the most abundant taxon of the locality.