Observations of deformation from 1992 to 1997 in the southern Coso Range using satellite radar interferometry show deformation rates of up to 35 mm yr-1 in an area ~10 km by 15 km. The deformation is most likely the result of subsidence in an area around the Coso geothermal field. The deformation signal has a short-wavelength component, related to production in the field, and a long-wavelength component, deforming at a constant rate, that may represent a source of deformation deeper than the geothermal reservoir. We have modeled the long-wavelength component of deformation and inferred a deformation source at ~4 km depth. The source depth is near the brittle-ductile transition depth (inferred from seismicity) and ~1.5 km above the top of the rhyolite magma body that was a source for the most recent volcanic eruption in the Coso volcanic field <Manley and Bacon, 2000>. From this evidence and results of other studies in the Coso Range, we interpret the source to be a leaking deep reservoir of magmatic fluids derived from a crystallizing rhyolite magma body. ¿ 2001 American Geophysical Union