A statistical method is presented which uses sparsely distributed raingages to obtain calibrations for satellite-based rainfall algorithms. The method can also be used for the development and verification of these algorithms. It is assumed that the distributions of areal rainfall, given a value of a satellite areal rainfall estimate, are homogeneous and stationary over a region encompassing a network of sparse raingages. The method may best be applied over open ocean regions to supplement the limited number of dense raingage/radar networks there. A description of the method is given, followed by an illustration of the method using simulated rain fields. Finally, the method is used to calibrate a simple satellite rainfall algorithm using Pacific atoll monthly raingage data. ¿American Geophysical Union 1991