The origin of sedimentary basins is a key element of the geological evolution of the continental lithosphere. During the last decade substantial progress has been made in understanding the thermo-mechanical aspects of sedimentary basin formation and the isostatic response of the lithosphere to surface loads such as basins. Most of this progress has been made not so much in terms of the development of new modelling methodologies and insights into the rheological makeup of the lithosphere but rather in the processing of substantial, new, high-quality data sets from previously unexplored areas of the globe. Virtually all modelling carried out so far has been in terms of lithospheric displacements, thus refraining from a full examination of dynamic controls exerted by lithospheric stresses. This is because stresses are very sensitive to adopted lithospheric rheologies and these rheologies have been, by convention, unrealistically simple. This is true of models for both extensional and compressional sedimentary basins. For example, most models for extensional basin formation (Roberts et al., 1991) are keyed to lithospheric strain due to an unknown and unspecified stress field rather than to the strain response of the lithosphere to a known and/or realistic stress state. Moreover, changes in plate tectonic regimes and associated stress fields have been shown to be quite important in controlling the subsidence record and stratigraphic architecture of extensional basins. Similarly, models of basins developed in compressional environments (e.g., McClay, 1991) have been conventionally related to flexure profiles (displacement patterns), again not invoking the dynamic control of the compressional stresses intrinsic to this particular tectonic setting. Another reason that the relationship between lithospheric stresses and displacements in tectonic modelling has not received full attention is because little has been known about the actual stress state in the lithosphere. This situation has recently changed drastically as the result of the successful World Stress Map Project carried out in the framework of the International Lithosphere Program @back, 1992). Further, the application of structural techniques to establish the temporal evolution of paleo-stress fields has begun in a number of sedimentary basins (Letouzey, 1990). Not only has the dynamic element of lithospheric deformation been inadequately addressed but present quantitative models of the origin of basins are incapable of solving problems related to subsequent structural developments that may be intrinsically coupled with the basin formation. For example, late-stage compression during the post-rift evolution of extensional basins can largely explain current discrepancies between estimates of crustal thinning derived from structural analyses and subsidence data of rifted basins (Kooi and Cloetingh, 1989). Further progress in understanding the role of extensional faults in offshore areas like the North Sea requires detailed structural studies and modelling of exposed successions such as those found in intramontane transpressional basins. Post-rift compression of extensional or transtensional sedimentary basins leads to complex near-surface deformation patterns. In such cases of structural inversion, inher-