The present paper deals with the seismic response analysis and the evaluation of most likely failure modes for a water storage structure. For the stress analysis, a 3-D mathematical model has been adopted to represent the structure appropriately. The structure has been analyzed for both static and seismic loads. Seismic analysis has been carried out considering the hydrodynamic effects of the contained water. Based on the stress analyses results, the most likely failure modes viz. tensile cracking and compressive crushing of concrete for the various structural elements; caused by the seismic event have been investigated. Further an attempt has also been made to quantify the initial leakage rate and average emptying time for the structure during seismic event after evaluating the various crack parameters viz. crack-width and crack-spacing at the locations of interest. The results are presented with reference to peak ground acceleration (PGA) of the seismic event. It has been observed that, an increase in PGA would result in significant increase in stresses and crack width in the various structural members. Significant increase in initial leakage rate and decrease in average emptying time for the structure has also been observed with the increase in PGA.