The 1959 discovery of the hominin fossil Zinjanthropus boisei brought the world's attention to the rich records at Olduvai Gorge, Tanzania. Subsequent excavations of archaeological level 22 (FLK Zinj) Bed I uncovered remains of Homo habilis and a high-density collection of fossils and Oldowan stone tools. The occurrence of this unusual collection of bones and tools at this specific location has been controversial for decades. We present paleoecological data that provide new insights into the origin of FLK Zinj. Our recent excavations 200 m north of the site uncovered a 0.5-m-thick tufa mound draped by Tuff IC, in the same stratigraphic horizon as level 22. Stable isotope analyses indicate that the carbonates were deposited by a freshwater spring. Phytolith analysis of the waxy clay under Tuff IC revealed abundant woody dicotyledon and palm phytoliths, indicating that the site was wooded to densely wooded. The time equivalency and close physical proximity of the two environments indicate the two are related. This study has provided the first documented evidence of springs in Bed I and these data have important implications for the interpretation of hominin behavior in meat acquisition and the ongoing debate on scavenging versus hunting.