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This paper describes a method for building interpolating or approximating implicit surfaces from polygonal data. The user can choose to generate a surface that exactly interpolates the polygons, or a surface that approximates the input by smoothing away features smaller than some user-specified size. The implicit functions are represented using a moving least-squares formulation with constraints integrated over the polygons. The paper also presents an improved method for enforcing normal constraints and an iterative procedure for ensuring that the implicit surface tightly encloses the input vertices.
Shen et al. (Sun,) studied this question.