Western Anatolia is one of the most seismically active continental regions in the world and much of it has been undergoing NS-directed extensional deformation since Early Miocene time. In a cooperative study, seismologists from Saint Louis University, USA and Dokuz Eylul University, Turkey, deployed five broad-band and 45 short-period seismic stations in western Anatolia between 2002 November and 2003 October. The present paper uses data collected by this network and the data from five permanent stations operated by the Kandilli Observatory and Earthquake Research Institute to map the hypocentral distribution of local earthquakes and to determine crustal structure of western Anatolia. We obtained a 1-D P-wave crustal velocity model using a generalized scheme for simultaneously obtaining earthquake locations and a crustal velocity model. Our velocity model is characterized by crustal velocities that are significantly lower than average continental values. The low velocities may be associated with high crustal temperatures, a high degree of fracture, or the presence of fluids at high pore pressure in the crust. We located 725 local earthquakes and classified them in three categories. We found that the level of seismic activity in western Anatolia is higher than previously reported. Station delays resulting from the inversion process correlate with near-surface geology and the thickness of sediments throughout the region. The hypocentral distribution of the events indicates that peak seismicity for the region occurs at depths of about 10 km.