Their territory encompassed modern-day northwestern Gansu, and for this reason, they were given the prefix of "Western" in historiography to distinguish them with the other Liang states at the time.

Li Gao served as a magistrate under Northern Liang, and in 400, at the recommendation of the local Han elites, he was made the Administrator of Dunhuang.

That same year, the Administrator of Jinchang, Tang Yao (唐瑤) rebelled in his commandery and acclaimed Li Gao as his leader, offering him the title of Duke of Liang.

Li Gao's state was backed by local Han Chinese gentry clans, and all the cities west of Yumen Commandery submitted to him.

Li Gao maintained a stable economy within his state by encouraging agriculture and trade with the Western Regions, along with promoting Confucianism through the establishment of new schools.

In 420, Li Xin was enticed into attacking the Northern Liang capital, Guzang (姑臧, in modern Wuwei, Gansu), and fell into a trap.