A geological and geotechnical framework was provided in order to facilitate understanding of the damage to structures resulting from soil conditions during the earthquake of January 17, 1995 at Hyogo-ken Nanbu (Kobe), Japan. Special attention was paid to the large scale failures of the quay walls in the port of Kobe, resulting from liquefaction. The performance of structures in improved and unimproved ground were compared. It was observed that locations with some previous site improvements through densification behaved satisfactorily, despite unanticipated high levels of ground motion. Soil-structure interaction problems, such as pile foundations, bridge piers, lifelines, and an underground subway station were also described. Reference was made to the significance of these failures for the seismic design in the Fraser Delta in British Columbia in view of the area`s proneness to liquefaction during a major earthquake. 31 refs., 5 tabs., 45 figs.