Over six decades, satellite remote sensing of water resources has evolved from manual interpretation of weather photographs to AI systems that learn hydrologic predictions directly from satellite imagery. This review traces that evolution through the observation-to-inference arc—a framework for the progressively tightening coupling between what satellites observe and what hydrologists infer. Using illustrative applications in precipitation, evapotranspiration, soil moisture, snow, surface water, and groundwater, we show how early observations (1960–1985) remained disconnected from operational hydrology; how calibrated retrieval algorithms (1985–2000) established a one-way pipeline from satellites to models; how operational infrastructure (2000–2015), anchored by MODIS, GRACE, GPM, and Sentinel, achieved assimilative coupling through computational feedback between models and observations; and how deep learning (2015–present) is beginning to collapse this pipeline. Multi-source data fusion has been a recurring enabler at each stage. We articulate a four-level AI vision and research trajectory, from AI-assisted interpretation through AI-native retrieval and AI-driven inference to autonomous Earth observation intelligence. Persistent challenges in mission continuity, calibration, equity of access, and translating satellite-derived information into operational water management decisions provide essential context for evaluating both the promise and limits of this trajectory.
Daniel P. Ames (Fri,) studied this question.