This thesis discusses the interaction between methods of tunnelling in soil and sources of ground loss. Two distinct phases of settlement in cohesive soils are identified. Short-term settlements are caused by loss of ground into the tunnel and long term settlements are caused by consolidation of the ground around the tunnel. A stochastic model of ground movements caused by volume loss into the tunnel is developed in order to explain in-situ observations. Consolidation settlement is estimated with the aid of flow nets developed by finite difference numerical modelling. These nets are also used to estimate the contribution of seepage to tunnel face instability. Field observations of ground movements caused by tunnelling In soft, cohesive ground were made at three sites. These measurements were taken In order not only to add to the store of case history evidence already available, but also in a direct attempt to confirm or disprove the theoretical model. Tunnelling conditions were different in each case. One tunnel was shield-driven in laminated clay, one was shield-driven with the aid of compressed air support In alluvial organic slit, and one was driven without a shield in stiff, stony clay. These case histories confirm that settlement troughs of Gaussian configuration were developed, agreeing with the stochastic model, and that long-term consolidation may develop in clay soils on the removal of compressed air support from the tunnel