Abstract Nowadays, the researches of using Differential Interferometric Synthetic Aperture Radar (D-InSAR) technique to monitor the land subsidence are mainly on how to qualitatively analyze the subsidence areas and values, but the analysis of subsidence process and mechanism are insufficient. In order to resolve these problems, 6 scenes of ERS1/2 images captured during 1995 and 2000 in a certain place of Jiangsu province were selected to obtain the subsidence and velocities in three time segments by “two-pass” D-InSAR method. Then the relationships among distributions of pumping wells, exploitation quantity of groundwater, and confined water levels were studied and the subsidence mechanism was systematically analyzed. The results show that using D-InSAR technique to monitor the deformation of large area can obtain high accuracies, the disadvantages of classical observation methods can be remedied and there is a linear relationship among the velocities of land subsidence, the water level and the exploitation quantity.