In this study, the seismic performance of concrete ground-supported cylindrical as well as liquid-filled elevated water tanks supported on concrete shaft is evaluated using the finite element method. The effects of a wide spectrum of parameters such as liquid sloshing, tank wall flexibility, vertical ground acceleration, tank aspect ratio, base fixity, and earthquake frequency content on dynamic behaviour of such structures are examined. Furthermore, the adequacy of current practice in seismic analysis and design of liquid containing structures is investigated. A comprehensive parametric study covering a wide range of tank capacities and aspect ratios found in practice today is also carried out on elevated tanks. Two different innovative strategies to reduce the seismic response of elevated tanks are examined, in the first strategy the inclined cone angle of the lower portion of the vessel is increased while in the second strategy the supporting shaft structure is isolated either from the ground or the vessel mounted on top.The results of this study show that capability of the proposed finite element technique. Using this method, the major aspects in the fluid-structure interaction problems including wall flexibility, sloshing motion, damping properties of fluid domain, and the individual effects of impulsive and convective terms can be considered. The effects of tank wall flexibility, vertical ground acceleration, base fixity, and earthquake frequency content are found to be significant on the dynamic behaviour of liquid tanks. The parametric study indicates that the results can be utilized with high level of accuracy in seismic design applications for conical elevated tanks. This study further shows that increasing the cone angle of the vessel can result in a significant reduction in seismically induced forces of the tank, leading to an economical design of the shaft structure and the foundation system. It is also concluded that the application of passive control devices to conical elevated tanks offers a substantial benefit for the earthquake-resistant design of such structures.