The Armutlu peninsula, located in the eastern Marmara Sea, coincides with the western end of the rupture of the 17 August 1999, Izmit M-W 7.6 earthquake which is the penultimate event of an apparently westward migrating series of strong and disastrous earthquakes along the NAFZ during the past century. We present new seismotectonic data of this key region in order to evaluate previous seismotectonic models and their implications for seismic hazard assessment in the eastern Marmara Sea. Long term kinematics were investigated by performing paleo strain reconstruction from geological field investigations by morphotectonic and kinematic analysis of exposed brittle faults. Short term kinematics were investigated by inverting for the moment tensor of 13 small to moderate recent earthquakes using surface wave amplitude spectra. Our results confirm previous models interpreting the eastern Marmara Sea Region as an active transtensional pull-apart environment associated with significant NNE-SSW extension and vertical displacement. At the northern peninsula, long term deformation pattern did not change significantly since Pliocene times contradicting regional tectonic models which postulate a newly formed single dextral strike slip fault in the Marmara Sea Region. This area is interpreted as a horsetail splay fault structure associated with a major normal fault segment that we call the Waterfall Fault. Apart from the Waterfall Fault, the stress strain relation appears complex associated with a complicated internal fault geometry, strain partitioning, and reactivation of pre-existing plane structures. At the southern peninsula, recent deformation indicates active pull-apart tectonics constituted by NE-SW trending dextral strike slip faults. Earthquakes generated by stress release along large rupture zones seem to be less probable at the northern, but more probable at the southern peninsula. Additionally, regional seismicity appears predominantly driven by plate boundary stresses as transtensional faulting is consistent with the southwest directed far field deformation of the Anatolian plate. (C) 2013 Elsevier B.V. All rights reserved.