The importance of field heterogeneities in ground-water pollution prob
lems has been widely recognized during the last few decades. To addres
s the impact of field heterogeneities on ground-water flow and solute
transport, many different stochastic methods have been developed. Amon
g all these stochastic methods kriging is the most popular one used by
many practitioners to interpolate and extrapolate measured transmissi
vity data. However, hydraulic head measurements are generally more abu
ndant than transmissivity data. Therefore, the cokriging technique whi
ch utilizes both the head and transmissivity measurements to estimate
transmissivity and/or hydraulic head distributions has also received m
uch attention in recent years. Classical cokriging relies on a linear
predictor approach and uses covariance and cross covariance functions
derived from a first-order approximation. Consequently, it often resul
ts in head and transmissivity fields that can produce unacceptable vel
ocity distributions. In this paper, we develop an iterative method whi
ch combines classical cokriging and a numerical flow model to obtain o
ptimum estimates of transmissivity and head distributions and to allev
iate the limitations of classical cokriging. Through several numerical
examples, we demonstrate that this method is superior to the classica
l cokriging method in terms of producing mass conservative velocity fi
elds. In addition, results of the study also indicate that hydraulic h
ead measurements can improve for our prediction of ground-water flow d
irections and paths in aquifers significantly.