The distribution of arsenic (As) in environmental compartments is investigated in the Nalaikh Depression of N-Mongolia. In Nalaikh, lignite coal is mined by artisanal small-scale mining (ASM) approaches. Because As is often associated with sulfuric minerals in coal, it was hypothesized that enrichment of As is related to coal ASM. A second hypothesis considered coal combustion in power plants, and stoves are a key source of As in the local environment. Three mobilization and distribution scenarios were developed for potential As pathways in this semiarid environment. About 43 soil and 14 water sites were analyzed for As concentrations and meaningful parameters in soil and water. About 28 topsoil samples were analyzed in surface-subsurface pairs in order to identify potential eolian surface enrichment. Additionally, fluvial-alluvial sediments and geogenic and anthropogenic deposits were sampled. Water was sampled as surface water, groundwater, precipitation, and industrial water. Results show that As does not pose a ubiquitous risk in the Nalaikh Depression. However, locally and specifically in water, As concentrations may exceed the WHO guideline value for drinking water by up to a factor of 10. A carefully selected sampling strategy allows the evaluation of the distribution scenarios, which reveals a combination of (a) geogenic As in groundwater and distribution via surface water with (b) anthropogenic As redistribution via eolian pathways. An immediate linkage between As redistribution and coal mining is not evident. However, As distribution in fly ash from coal combustion in the local power plant and yurt settlements is the most likely As pathway. Hence, the results indicate the potential influence of diffuse, low-altitude sources on As emission to the environment. As such, this study provides a good example for As distribution under semiarid climate conditions influenced by geogenic and anthropogenic factors.