The telescope was first proposed in 1994. The project was approved by the National Development and Reform Commission (NDRC) in July 2007.[1] A 65-person village was relocated from the valley to make room for the telescope[2] and an additional 9,110 people living within a 5 km (3 mi) radius of the telescope were relocated to create a radio-quiet area.[2] The Chinese government spent around US$269 million in poverty relief funds and bank loans for the relocation of the local residents, while the construction of the telescope itself cost $180 million.[3]

On 26 December 2008, a foundation-laying ceremony was held on the construction site.[4] Construction started in March 2011,[5][6] and the last panel was installed on the morning of 3 July 2016.[2][6][7][8]

Originally budgeted for CN¥700 million,[9]: 49 [5] the final cost was CN¥1.2 billion (US$180 million).[2][10] Significant difficulties encountered were the site's remote location and poor road access, and the need to add shielding to suppress radio-frequency interference (RFI) from the primary mirror actuators.[11] The actuators were redesigned to meet shielding efficiency requirements and their installation was completed in 2015. Interference from the actuators has not been detected since.[12]

Testing and commissioning began with first light on 25 September 2016.[13] The first observations are being done without the active primary reflector, configuring it in a fixed shape and using the Earth's rotation to scan the sky.[11] Subsequent early science took place mainly in lower frequencies[14] while the active surface is brought to its design accuracy;[15] longer wavelengths are less sensitive to errors in reflector shape. It took three years to calibrate the various instruments so it can become fully operational.[13]

Local government efforts to develop a tourist industry around the telescope are causing some concern among astronomers worried about nearby mobile telephones acting as sources of RFI.[16] A projected 10 million tourists in 2017 will force officials to decide on the scientific mission versus the economic benefits of tourism.[17][needs update]

The primary driving force behind the project[11] was Nan Rendong, a researcher with the Chinese National Astronomical Observatory, part of the Chinese Academy of Sciences. He held the positions of chief scientist[8] and chief engineer[11] of the project. He died on 15 September 2017 in Boston due to lung cancer.[18]

On 14 June 2022, astronomers, working with China's FAST telescope, reported the possibility of having detected artificial (presumably alien) signals, but cautioned that further studies are required to determine if some kind of natural radio interference may be the source.[19][20] More recently, on 18 June 2022, Dan Werthimer, chief scientist for several SETI-related projects, noted, "These signals are from radio interference; they are due to radio pollution from earthlings, not from E.T."[21]