Based on the data from piezometers, well logs, geophysical surveys and the interferometric synthetic aperture radar (InSAR) technique, this study investigates the main causes of land subsidence in Damaneh City, Iran. The size, openings and direction of fissures were measured by micrometer and compass. The locations of fissures and wall cracks were determined by GPS. The geoelectrical data were used to determine the composition, thickness, depth and shape of lower parts of the aquifer. Groundwater fluctuations were evaluated by available piezometers. The InSAR technique was used to measure land deformation from space and to map the dense changes of surface displacements. The results indicate that the main cause of ground subsidence is the decline of groundwater heads and changes in composition and thickness of compressible lacustrine sediments. The subsidence map obtained from the radar data of ASAR sensor of ENVISAT satellite shows that the subsidence zone is mainly in northern city that is underlain by very thick fine sediments. The subsidence rates from March to December 2005 and from July 2011 to January 2012 are 6.7 and 7.0 cm/a, respectively. The results also show good correlations among the formation of earth features, decline in groundwater head and thickness of fine-grained sediments. We recommend that the groundwater withdrawal for agricultural and industrial sectors should be restricted and urban expansion in the northern part of the city should be constrained.