In this paper, the accuracy of vertical displacements obtained from GPS observations is briefly discussed. Ground subsidence, the major contamination in vertical displacements, particularly, large ground subsidence caused by ground water withdraw in large amount, is analyzed. The results show that the subsidence area near the epicenter, detected by GPS observations before the earthquake, and the locked segment of the Longmenshan Fault shown by vertical displacements were closely related with the occurrence of the Wenchuan earthquake.