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The computation of the external gravitational field of the earth from satellite analysis and its subsequent combination with terrestrial gravity data has been usually done with spherical harmonic potential coefficients representing the earth's gravitational potential. This paper examines the theory of the problem when the gravity field of the earth is represented by discrete blocks on the surface of the earth. Gravity anomalies in these blocks now become the unknown parameters being sought. The determination of such anomalies is discussed as well as the procedure for directly combining terrestrial gravity information with this new type of satellite analysis. Results from a simulation study are given along with recommendations for the improvement of the tested method. Although no real data is used in the study, procedures are outlined in the case real data is to be used.