We present a geostatistically based inverse model for characterizing hetero
geneity in parameters of unsaturated hydraulic conductivity for three-dimen
sional flow. Pressure and moisture content are related to perturbations in
hydraulic parameters through cross-covariances, which are calculated to fir
st-order. Sensitivities needed for covariance calculations are derived usin
g the adjoint state sensitivity method. Approximations of the conditional m
ean parameter fields are then obtained from the cokriging estimator. Correl
ation between parameters and pressure - moisture content perturbations is s
een to be strongly dependent on mean pressure or moisture content. High cor
relation between parameters and pressure data was obtained under saturated
or near saturated flow conditions, providing accurate estimation of saturat
ed hydraulic conductivity, while moisture content measurements provided acc
urate estimation of the pore size distribution parameter under unsaturated
flow conditions.