Members of the ruling Tufa clan were of Xianbei ethnicity and distant relatives of the Tuoba imperial house of the Northern Wei dynasty.

In the early 4th-century, their chieftain, Pigu (匹孤), led his followers west to the Hexi Corridor from the Yin mountains after his brother, Tuoba Liwei, succeeded their father.

After Later Liang suffered a heavy defeat to Western Qin in 397, Tufa Wugu proclaimed himself the Prince of Xiping and changed the era name, signifying a breakaway.

Wugu changed his title to Prince of Wuwei and moved the capital to Ledu (樂都, in modern Haidong Prefecture, Qinghai) before dying of illness resulting from a horse riding accident.

After Tufa Lilugu succeeded his brother, he shifted the capital to Xiping (西平郡; around present-day Xining, Qinghai) and claimed the title of Prince of Hexi.

That year, he invaded the Northern Liang but was badly routed, and afterwards, he was heavily defeated by the Helian Xia in the Ordos where many of his key officials died in battle.

In 408, capitalizing on Southern Liang's troubles, Later Qin attacked them and laid siege on Guzang, during which there was a revolt attempt within the city.

Rutan repelled the attack and made peace with Later Qin, later re-declaring himself the King of Liang, but his state had been greatly weakened by these series of crises.

The defeat in 410 saw more rebellions breaking out in his territory, leading to the capital being shifted back south to Ledu while Guzang fell to Northern Liang.

Desperate to escape his situation, Rutan campaigned against the tribes, but while he was away, the Western Qin attacked and captured Ledu, prompting the rest of Southern Liang's territory to surrender.

Tufa Rutan was initially treated with honor in Western Qin, but by the end of 414, he was poisoned to death by their ruler, Qifu Chipan.