The interpretation of falling-head tests in cased boreholes is discussed. These tests are commonly used to measure hydraulic conductivity of compacted clay liners and are often part of the construction quality assurance program. Three methods of interpretation are reviewed with data sets collected from real tests. Two of these methods have been the subject of past research by other authors: the Hvorslev, or time-lag, method and the velocity method. After the limitations of these two approaches have been underlined, a third method is proposed. It uses a best linear unbiased estimator to fit the theoretical head difference function in a plot of falling water column elevation as a function of time (Zt method). The Hvorslev method is found unreliable and is not recommended. The velocity method is theoretically sound, but statistical uncertainty can become high when this method is used in testing materials with low hydraulic conductivity, such as clay liners. Materials with low hydraulic conductivity tend to produce scattered velocity plots, creating considerable uncertainty for the estimated k value. The proposed Zt method is less sensitive to inaccuracies in measurements, yielding a more reproducible result. An interpretation method for stages I and II of two-stage borehole tests is also proposed. This method yields the anisotropy of the liner and the vertical hydraulic conductivity. As a result of inaccuracies in measurements and limited difference between the geometries of stages I and II, the computed anisotropy exhibits significant uncertainty.Key words: clay liners, clay covers, hydraulic conductivity, permeability, in situ test, anisotropy, interpretation.