We present a method for separating regional and residual magnetic fiel
ds using a 3-D magnetic inversion algorithm. The separation is achieve
d by inverting the observed magnetic data from a large area to constru
ct a regional susceptibility distribution, The magnetic field produced
by the regional susceptibility model is then used as the regional fie
ld, and the residual data are obtained by simple subtraction. The adva
ntages of this method of separation are that it introduces little dist
ortion to the shape of the extracted anomaly and that it is not affect
ed significantly by factors such as topography and the overlap of powe
r spectra of regional and residual fields. The proposed method is test
ed using a synthetic example having varying relative positions between
the local and regional sources and then using a field data set from A
ustralia. Results show that the residual field extracted using this me
thod enables good recovery of target susceptibility distribution from
inversions.