Induced microearthquake activity at The Geysers geothermal reservoir is observed in the vicinity of eight geothermal steam power units. The earthquakes do not align with mapped faults but occur adjacent to steam wells. The sense of motion as deduced from focal mechanisms is strike-slip to reverse in the upper 1 km of the reservoir and changes to strike-slip to oblique normal slip at greater depth because of the increased lithostatic load. Below 1 km the reservoir is undergoing horizontal extension. Alignment of P and T axes with the regional stress field suggests that contraction of the reservoir contributes the incremental stress perturbation to the regional stress field and causes microearthquakes.