TOAUTONOMOUSLY control a satellite formation, the relative position and velocity of the satellites needs to be estimated. For tight formations, all the required information needs to be obtained and processed onboard the satellites. In case absolute position measurements, such as provided by the Global Positioning System (GPS), cannot be obtained, estimation of the absolute or relative state requires the satellites to autonomously measure the intersatellite range and/or line-of-sight angles. Markley [1], Herklotz [2], Psiaki [3], Liu and Liu [4], and Yim et al. [5] have analyzed the problem of autonomous absolute orbit determination using intersatellite vector measurements whereas Markley [1], Woffinden and Geller [6–8], Chen and Xu [9], Doolittle et al. [10], Chavez and Lovell [11], Holt and Lightsey [12], Kang et al. [13], and Matko et al. [14] studied the problem of autonomous relative orbit determination using intersatellite measurements. Several authors furthermore studied the effect of intersatellite ranging to augment external measurements like those from GPS and ground stations for either absolute or relative orbit determination. Amongst these are Holt and Lightsey [15], Huxel [16], and Huxel and Bishop [17,18]. Although previous work has been quite extensive, the understanding of the results obtained in some of these works needs to be improved by performing a detailed study of the observability of the system as a function of the relative state and of sensor suite properties, such as sensor accuracy and sensor placement. In addition, as no reference has been found in the literature, a further objective of this research is to provide a derivation of the expected value and variance, in three dimensions, in the estimation of the relative position of two objects. To isolate the basic properties of interest, a simple setting is implemented. The rationale behind this is that more advanced and realistic effects add only minor contributions and effects to the findings while they add considerable complexity to the analysis of the results. Two satellites, a chief and a deputy, areflying in formation in a low-Earth orbit (LEO) and perform intersatellite range measurements using locally generated one-way radio frequency ranging signals. The chief uses either one or three receiver (Rx) antennas to acquire and track the ranging signal transmitted by the deputy and to determine the relative range(s). The range measurements are treated together with a linearized dynamic model of the satellites’ relative motion to estimate their relative orbit using an iterative batch leastsquares (LSQ) algorithm. An observability analysis is performed to gain a deeper insight in the obtained results.