The Sea Cliff hydrothermal field on the northern segment of the Gorda Ridge is situated along a rift-bounding normal fault about 2.6 km east of the neovolcanic zone and approximately 300 m above the spreading axis. The structural setting of this hydrothermal field differs from that of most other active seafloor hydrothermal sites investigated to date, which are typically situated in the neovolcanic zone. Mineralization occurs in basaltic talus covering a large normal-fault scarp. Hydrothermal crusts cover much of the seafloor in the area of the active hydrothermal field. These crusts form by extensive alteration of basaltic hyaloclastite in a zone of mixing between ascending hydrothermal fluid and entrained seawater. The initial stage of alteration is magnesian metasomatism of both crystalline basalt and basaltic glass, converting the rock to Mg-rich smectite and smectite/chlorite. Further alteration removes nearly all cations and ultimately leads to silicification. Preservation of basaltic texture in the silicified rocks provides evidence that even such sparingly soluble elements as A1 and Ti have been removed. Oxygen-isotopic ratios of the altered rocks constrain initial alteration to temperatures near 220°C, close to the maximum measured vent temperatures of 247°C. Silicification proceeded to much lower temperatures, and most amorphous silica deposition occurred at temperatures below 100°C. Sulfur-, strontium-, and lead-isotopic data all indicate a predominantly basaltic source, with important contributions from seawater but no significant contribution from sedimentary sources. Comparison with ophiolite-hosted massive sulfide deposits shows that the structural setting, alteration sequence, and depositional environment are all similar and suggests that mineralization and replacement of basaltic breccia in the Sea Cliff hydrothermal field likely occur in the subsurface beneath a capping layer of silicified hyaloclastite.