Covariance studies were performed to investigate the orbit determination problem for a small transponder satellite in a nearly circular polar orbit with 4-hour period around Mercury. With X band and Ka band Doppler and range measurements, the analysis indicates that the gravitational field through degree and order 10 can be solved for from as few as 40 separate 8-hour arcs of tracking data. In addition, the Earth-Mercury distance can be determined during each ranging period with about 6-cm accuracy. The expected geoid accuracy is 10 cm up through degree 5, and 1 m through degree 8. The main error sources were the geocentric range measurement error, the uncertainties in higher degree gravity field terms, which were not solved for, and the solar radiation pressure uncertainty. ¿ American Geophysical Union 1990