In the present article, effect of non-uniform excitation due to spatially variation of seismic input on nonlinear response of concrete gravity dams is considered. The reservoir is assumed compressible. Isotropic damage mechanics approach is used to model static and dynamic nonlinear behavior of mass concrete in 2D space. The validity of utilized nonlinear model is considered using available theoretical results under static and dynamic conditions. The tallest monolith of Pine Flat dam is selected as a case study. Two cases are analyzed for considering the effect of limited wave propagation velocity on seismic behavior of the dam-reservoir system in which travelling velocities are chosen as 2000 m/s and infinity. It is found that tensile damage in neck and toe regions and also, in the vicinity of the base increase when the system is excited non-uniformly.