We present high-resolution 'Chirp' sub-bottom profiler data from Thingvallavatn, a lake in Iceland's western rift zone. These data are combined with stratigraphic constraints from sediment cores to show that movement on normal faults since 9 ka are temporally correlated with magmatic events, indicating that movements were controlled by episodic dyke intrusion. Sediment depo-centres and the focus of subsidence migrated westwards over 3-4 kyr towards the locus of subsequent brittle failure. We interpret this subsidence as related to dyke intrusion a few km along strike, originating from the Hengill volcanic system, which occurred prior to major dyking, faulting and subsidence within the lake at 1.9 ka