The application of satellite differential synthetic aperture radar (SAR) interferometry, principally coherent (InSAR) and to a lesser extent, persistent-scatterer (PSI) techniques to hydrogeologic studies has improved capabilities to map, monitor, analyze, and simulate groundwater flow, aquifer-system compaction and land subsidence. A number of investigations over the previous decade show how the spatially detailed images of ground displacements measured with InSAR have advanced hydrogeologic understanding, especially when a time series of images is used in conjunction with histories of changes in water levels and management practices. Important advances include: (1) identifying structural or lithostratigraphic boundaries (e.g. faults or transitional facies) of groundwater flow and deformation; (2) defining the material and hydraulic heterogeneity of deforming aquifer-systems; (3) estimating system properties (e.g. storage coefficients and hydraulic conductivities); and (4) constraining numerical models of groundwater flow, aquifer-system compaction, and land subsidence. As a component of an integrated approach to hydrogeologic monitoring and characterization of unconsolidated alluvial groundwater basins differential SAR interferometry contributes unique information that can facilitate improved management of groundwater resources. Future satellite SAR missions specifically designed for differential interferometry will enhance these contributions. ?? Springer-Verlag 2006.