iPEST is a software package that performs automated parameter estimation of groundwater models. It works by minimizing the summed differences between measured and calculated values, such as groundwater levels and flows, by adjusting model parameters such as hydraulic conductivities and storage coefficients. It uses the Levenberg-Marquardt method to minimize the objective function through successive iterations, using gradient-based and Gauss-Newton approaches to guide the parameter adjustments toward the minimum summed difference. The document provides details on iPEST's parameter estimation methodology and capabilities.