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We have tested a method utilizing Landsat-TM and SPOT high resolution images to study a geodynamically active zone characterised by major geothermal activity. Analysis of the imagery permits better understanding of the patterns of spatial distribution of the geothermal fields of the Taupo Volcanic Zone (TVZ) in which some en echelon structures are linked to major crustal faults resulting from subduction. Automatic classification techniques have been developed as well as a specific study of the thermal spectral region (Landsat-TM band 6) which, despite poor spatial resolution (120m), provides information about geothermal activity at the local scale. The study reveals the value of Landsat-TM band 5 (middle reflective IR, 1·55urn-I·75 pm), notably by the 5,4, I (red, green, blue) combination which identifies vegetation associations in geothermal areas. In addition, the images assisted mapping of volcanic deposits and structures associated with the Tarawera Rift which formed in 1886. Based on our analysis of high spatial resolution satellite images, this appears likely to be a key technique to help understanding deformation in this region.