The dynamical behavior of a thin flexible array towed through the wate
r is described by the Paidoussis equation. By discretizing this equati
on in space and time a finite dimensional state space representation i
s obtained where the states are the transverse displacements of the ar
ray from linearity in either the horizontal or vertical plane. The for
m of the transition matrix in the state space representation describes
the propagation of transverse displacements down the array. 'rhe outp
uts of depth sensors and compasses located along the array are shown t
o be related in a simple, linear manner to the states. From this state
space representation a Kalman filter is derived which recursively est
imates the transverse displacements and hence the array shape. It is s
hown how the properties of the Kalman filter reflect the physics of th
e propagation of motion down the array. Solutions of the Riccati equat
ion are used to predict the mean square error of the Kalman filter est
imates of the transverse displacements.