The purpose of this paper is to present the methodology set up to derive ca
tchment soil moisture from Earth Observation (EO) data using microwave spac
eborne Synthetic Aperture Radar (SAR) images from ERS satellites and to stu
dy the improvements brought about by an assimilation of this information in
to hydrological models. The methodology used to derive EO data is based on
the appropriate selection of land cover types for which the radar signal is
mainly sensitive to soil moisture variations. Then a hydrological model is
chosen, which can take advantage of the new information brought by remote
sensing. The assimilation of soil moisture deduced from EO data into hydrol
ogical models is based principally on model parameter updating. The main as
sumption of this method is that the better the model simulates the current
hydrological system, the better the following forecast will be. Another met
hodology used is a sequential one based on Kalman filtering. These methods
have been put forward for use in the European AIMWATER project on the Seine
catchment upstream of Paris (France) where dams are operated to alleviate
floods in the Paris area.