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Reservoir characterization is one of the most important factors in successful reservoir management. In water injection projects, a knowledge of reservoir heterogeneities and discontinuities is particularly important to maximize oil recovery. This text book presents a new technique to quantify communication between injection and production wells in a reservoir based on temporal fluctuations in rates. The technique combines a nonlinear signal processing model and multiple linear regression (MLR) to provide information about permeability trends and the presence of flow barriers.In this method, a new filter that specifically deals with compressibility, not permeability is developed. The weights indicate permeability; the filter parameters indicate compressibility. This allows application to fields where there is a remnant of primary production, or to fields where the production and injection are unbalanced. The developed procedure provides parameters (time constants) that explicitly indicate the attenuation and time lag between injector and producer pairs. The new procedure will enable for a better insight into the well-to-well connectivities for the fields than MLR.