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The methods and results of using Landsat Thematic Mapper (TM) data to classify and estimate the acreage of forest covertypes in northeastern Minnesota are described. Portions of six TM scenes covering five counties with a total area of 14,679 square miles were classified into six forest and five nonforest classes. The approach involved the integration of cluster sampling, image processing, and estimation. Using cluster sampling, 343 plots, each 88 acres in size, were photo interpreted and field mapped as a source of reference data for classifier training and calibration of the TM data classifications. Classification accuracies of up to 75 percent were achieved; most misclassification was between similar or related classes. An inverse method of calibration, based on the error rates obtained from the classifications of the cluster plots, was used to adjust the classification class proportions for classification errors. The resulting area estimates for total forest land in the five-county area were within 3 percent of the estimate made independently by the USDA Forest Service. Area estimates for conifer and hardwood forest types were within 0.8 and 6.0 percent respectively, of the Forest Service estimates. A trial of a second method of estimating the same classes as the Forest Service resulted in standard errors of 0.002 to 0.015. A study of the use of multidate TM data for change detection showed that forest canopy depletion, canopy increment, and no change could be identified with greater than 90 percent accuracy. The project results have been the basis for the Minnesota Department of Natural Resources and the Forest Service to define and begin to implement an annual system of forest inventory which utilizes Landsat TM data to detect changes in forest cover.