ABSTRACT We present the results of the first airborne LiDAR survey flown in the Koyna-Warna region and examine the relationship between the lineament fabric and the ongoing seismicity in the region. Our studies reveal that earthquakes of M≥4.0 for the period 1968 to 2016 are strongly correlated with a 10 km wide N-S fracture zone, which not only represents the surface expression of seismically active basement faults, but also act as conduits for water percolation between the Koyna and Warna reservoirs. A decreasing trend in the annual distribution of earthquakes was observed from 1985. A new burst of seismic activity in 1993 followed the impoudment of the Warna reservoir. We report a change in annual seismicity pattern, where seismicity peaks during September and December in the pre-Warna period, with a new peak emerging during March-April subsequent to the impoundment of Warna reservoir. A model is proposed to explain the seismicity along dominant N-S lineaments and the impact of Warna reservoir impounding which altered the hydrogeologic regime in the region.