Seismic response of the liquid storage tanks isolated by the elastomeric bearings and sliding systems is investigated under near-fault earthquake motions. The fault normal and parallel components of near-fault motion are applied in two horizontal directions of the tank. The continuous liquid mass of the tank is modeled as lumped masses known as sloshing mass, impulsive mass and rigid mass. The corresponding stiffness associated with these lumped masses has been worked out depending upon the properties of the tank wall and liquid mass. It is observed that the resultant response of the isolated tank is mainly governed by fault normal component with minor contribution from the fault parallel component. Further, a parametric study is also carried out to study the effects of important system parameters on the effectiveness of seismic isolation for liquid storage tanks. The various important parameters considered are: aspect ratio of tank, the period of isolation and the damping of isolation bearings. There exists an optimum value of isolation damping for which the base shear in the tank attains the minimum value under near-fault motion. The increase of damping beyond the optimum value will reduce the bearing and sloshing displacements but increases the base shear. A comparative performance of five isolation systems for liquid storage tanks is also studied under normal component of near-fault motion and found that the EDF type isolation system may be a better choice for design of isolated tank in near-fault locations. Finally, it is also observed that the satisfactory response can be obtained by analysing the base-isolated tanks under simple cycloidal pulse instead of complete acceleration history.