The Yanaizu-Nishiyama geothermal field, also known as Okuaizu, supports a 65 MWe geothermal power station. It is located in the western part of Fukushima Prefecture, northeast Japan. This field is characterised by rhyolitic volcanism of about 0.3-0.2 Ma that formed Sunagohara volcano. Drillcore geology indicates that volcanism began with a caldera-forming eruption in the center of this held, creating a 2-km-diameter funnel-shaped caldera. Subsequently, a fault-bounded block including this caldera subsided to form a 5-km-wide lake that accumulated lake sediments. Post-caldera volcanism formed lava domes and intrusions within the lake, and deposited ash-flow tuffs in and around the lake. The hydrothermal system of this field is strongly controlled by subvertical faults that have no relation to the volcanism. The principal production zone occurs at a depth of 1.0-2.6 km within fractured Neogene formations along two northwest-trending faults to the southeast of the caldera. These faults also formed fracture zones in the lake sediments, but there was no apparent offset of the sediments. Stratigraphic studies suggest that post-caldera activities of Sunagohara volcano have migrated southeastward to the present high-temperature zone. The source magma of Sunagohara volcano may contribute to the thermal potential of this field. (C) 2000 CNR.