This paper reveals the interesting relation between the inter-column spacing and the corresponding alteration of soil state of stresses due to the vibro-installation technique. This relation is inferred from analyses for load settlement records of various field load tests, performed for stone columns arrangements with different inter-column spacing values. In order to have adequate confidence in the findings, a well-documented case history, involving three columns patterns along with their relevant field and laboratory test results, is utilized for this study. Moreover, a well-tested finite element model, capable of simulating both elasto-plastic and time dependent soil deformations as well as pore water pressure building and dissipation, is employed in the analysis. Instead of determining the soil response to the test load, based on known initial soil stresses and material properties, the analysis is inversely posed to determine the soil initial stresses, based on the recorded settlements and the post-installation material properties. The alteration in the soil state of stress is represented by the increase in the post-installation horizontal to vertical stress ratio, K*, as a function of the inter-column spacing. It is found that this alteration experiences a systematic decrease in its magnitude as the inter-column spacing increases.