Coast is a unique environment in which atmosphere, hydrosphere and lithosphere contact each other. Coastline is one of the most important linear features on the earth’s surface, which display a dynamic nature. Coastal zone, and its environmental management requires the information about coastlines and their changes. This paper examines the current methods of coastline change detection using satellite images. Based on the advantages and drawbacks of the methods, a new procedure has been developed. The proposed procedure is based on a combination of histogram thresholding and band ratio techniques. The study area of the project is Urmia Lake; the 20th. largest, and the second hyper saline lake in the world. In order to assess the accuracy of the results, they have been compared with ground truth observations. The accuracy of the extracted coastline has been estimated as 1.3 pixels (pixel size=30 m). Based on this investigation, the area of the lake has been decreased approximately 1040 square kilometers from August 1998 to August 2001. This result has been verified through TOPEX/Posidon satellite information that indicates a height variation of three meters.