Although draped magnetic surveys contain more information about the ma
gnetization of the rocks near the surface of the earth than surveys at
constant elevation, allowance for the effects of the terrain is criti
cal for their correct interpretation. A new method for calculating the
magnetic effect of the topography from a digital terrain model by int
egrating analytically in the vertical direction and then numerically i
n the horizontal plane is presented. This method lends itself to the c
alculation of anomalies when the magnetization of the rocks varies wit
h position and thus is well suited to the inversion of draped aeromagn
etic surveys to obtain the apparent magnetization of the surficial roc
ks. This inversion is achieved by repeated use of an approximate inver
se function in the form of a two-dimensional (2-D) filter that is appl
ied to gridded data. An example, using draped magnetic data collected
over White Island, an active volcanic island of high relief, shows tha
t although the anomaly pattern is dominated by topographic effects, th
e distribution of near-surface magnetic bodies can be determined by a
joint inversion of the data and the topography. One of the highly magn
etized areas of White Island is interestingly in the vicinity of the a
ctive crater, with another near the inner wall of the caldera where th
ere are numerous fumaroles. It may be expected that the higher tempera
tures in these areas would reduce the magnetization. However, it appea
rs that an explanation for the higher magnetization can be found in th
e stability field of the mineral magnetite.