Land subsidence is a relatively overlooked form of environmental degradation caused by urbanization. It poses a significant challenge to the development of urban areas and threatens the long-term sustainability of cities. In recent years, the rate of subsidence has exceeded that of global sea level rise, putting coastal cities at a higher risk of flooding, submergence, and inhabitation. A System Dynamics approach is used to model and simulate the underlying mechanisms of land subsidence and how different factors interact to cause changes in the system over time. The study also evaluates key drivers of subsidence and the potential impacts of different policy options. The study finds that altering the water supply of the system provides the greatest impact on reducing land subsidence. Specifically, adding a source of recycled water to the system is a more sustainable solution, as it reduces the need for extraction from groundwater resources.