Following the victory at Aegospotami, the Spartans were in a position to finally force Athens to capitulate.
The Spartan king, Pausanias, laid siege to Athens main city while Lysander's fleet blockaded the port of Piraeus.
This action effectively closed the grain route to Athens through the Hellespont, thereby starving Athens.
Realising the seriousness of the situation, Theramenes started negotiations with Lysander.
These negotiations took three months, but in the end Lysander agreed to terms at Piraeus.
An agreement was reached for the capitulation of Athens and the cessation of the Peloponnesian War in 404 BC.

The Spartans required the Athenians to raze the walls of Piraeus as well as the Long Walls which connected Athens main town and the port (Piraeus); that the Athenians should abandon their colonies, and that Athens should surrender all but twelve of their ships to the Spartans.
However, Theramenes did secure terms that saved the city of Athens from destruction.
Greek towns across the Aegean Sea in Ionia were again to be subject to the Achaemenid Empire.
Following the victory at Aegospotami, the Spartans were in a position to finally force Athens to capitulate. The Spartan king, Pausanias, laid siege to Athens main city while Lysander's fleet blockaded the port of Piraeus. This action effectively closed the grain route to Athens through the Hellespont, thereby starving Athens. Realising the seriousness of the situation, Theramenes started negotiations with Lysander. These negotiations took three months, but in the end Lysander agreed to terms at Piraeus. An agreement was reached for the capitulation of Athens and the cessation of the Peloponnesian War in 404 BC.
The Spartans required the Athenians to raze the walls of Piraeus as well as the Long Walls which connected Athens main town and the port (Piraeus); that the Athenians should abandon their colonies, and that Athens should surrender all but twelve of their ships to the Spartans. However, Theramenes did secure terms that saved the city of Athens from destruction. Greek towns across the Aegean Sea in Ionia were again to be subject to the Achaemenid Empire.
Lysander