It has been proposed that large strike-slip faults such as the San Andreas contain water in seal-bounded compartments. Arguments based on heat flow and stress orientation suggest that in most of the compartments, the water pressure is so high that the average shear strength of the fault is less than 20 MPa. We propose a variation of this basic model in which most of the shear stress on the fault is supported by a small number of compartments where the pore pressure is relatively low. As a result, the fault gouge in these compartments is compacted and lithified and has a high undisturbed strength. When one of these locked regions fails, the system made up of the neighboring high and low pressure compartments can become unstable. Material in the high fluid pressure compartments is initially underconsolidated since the low effective confining pressure has retarded compaction. As these compartments are deformed, fluid pressure remains nearly unchanged so that they offer little resistance to shear. The low pore pressure compartments, however, are overconsolidated and dilate as they are sheared. Decompression of the pore fluid in these compartments lowers fluid pressure, increasing effective normal stress and shear strength. While this effect tends to stabilize the fault, it can be shown that this dilatancy hardening can be more than offset by displacement weakening of the fault (i.e., the drop from peak to residual strength). If the surrounding rock mass is sufficiently compliant to produce an instability, slip will propagate along the fault until the shear fracture runs into a low-stress region. Frictional heating and the accompanying increase in fluid pressure that are suggested to occur during shearing of the fault zone will act as additional destabilizers. However, significant heating occurs only after a finite amount of slip and therefore is more likely to contribute to the energetics of rupture propagation than to the initiation of the instability. We present results of a one-dimensional dynamic Burridge-Knopoff-type model to demonstrate various aspects of the fluid-assisted fault instability described above. In the numerical model, the fault is represented by a series of blocks and springs, with fault rheology expressed by static and dynamic friction. In addition, the fault surface of each block has associated with it pore pressure, porosity and permeability. All of these variables are allowed to evolve with time, resulting in a wide range of phenomena related to fluid diffusion, dilatancy, compaction and heating. These phenomena include creep events, diffusion-controlled precursors, triggered earthquakes, foreshocks, aftershocks, and multiple earthquakes. While the simulations have limitations inherent to 1-D fault models, they demonstrate that the fluid compartment model can, in principle, provide the rich assortment of phenomena that have been associated with earthquakes. ?? 1995 Birkha??user Verlag.