A description and model of the near-surface hydrothermal system at Casa Diablo, with its implications for the larger-scale hydrothermal system of Long Valley, California, is presented. The data include resistivity profiles with penetrations to three different depth ranges, and analyses of inorganic mercury concentrations in 144 soil samples taken over a 1.3 by 1.7 km area. Analyses of the data together with the mapping of active surface hydrothermal features (fumaroles, mudpots, etc.), has revealed that the relationship between the hydrothermal system, surface hydrothermal activity, and mercury anomalies is strongly controlled by faults and topography. There are, however, more subtle factors responsible for the location of many active and anomalous zones such as fractures, zones of high permeability, and interactions between hydrothermal and cooler groundwater. In addition, the near-surface location of the upwelling from the deep hydrothermal reservoir, which supplies the geothermal power plants at Casa Diablo and the numerous hot pools in the caldera with hydrothermal water, has been detected. The data indicate that after upwelling the hydrothermal water flows eastward at shallow depth for at least 2 km and probably continues another 10 km to the east, all the way to Lake Crowley.