The Masaya Volcano, Nicaragua, is a basaltic caldera in a subduction zone. The permanent source of the volcanic tremor was located inside Santiago crater, at the lava lake's position and 400 m below the NE rim, and therefore corresponds to superficial magma activity. We used two tripartite arrays (90 m side), one semicircular array (r=120 m) in 1992, and two semicircular arrays (r=60 m) and a 2500 m long linear array radiating out from the source and on the flank of the crater in 1993. We used both a cross-spectrum method and a correlation method to determine the wave delay time between the reference station and the other stations of an array and to quantify the wave field. Using the delays therefore by intersecting the back azimuth wave directions from the arrays, we could pinpoint the source. Additionally, the correlation coefficients obtained as functions of frequency for the three components of motion confirm the inferred position of the source of tremor. The tremor's wave field is composed of comparable quantities of dispersed Rayleigh and Love surface waves, whose phase velocities lie in the ranges 730--1240 m/s at 2 Hz and 330--550 m/s at 6 Hz. The dispersive phase velocities were inverted to obtain crustal structures with a minimal number of layers. The resulting velocity models are similar for the northern and southern parts of the volcano. After geometrical spreading corrections, Q2Hz=14 and Q3Hz=31 were determined along the northern linear array. The typical low velocities and low Q corresponding to the cone structure and are similar to those of other basaltic volcanoes like Puu Oo, Hawaii, and Klyuchevskoy, Kamchatka.¿ 1997 American Geophysical Union