Technical Abstract: Data sets which contain measurements on a spatially referenced response and covariate are analyzed using either co-kriging or spatial analysis of covariance. While co-kriging accounts for the correlation structure of the covariate, it is purely a predictive tool. Alternatively, spatial analysis of covariance allows for parameter estimation yet disregards the correlation structure of the covariate. A method is proposed which both accounts for the correlation in and between the response and covariate and allows for the estimation of model parameters; also, this method allows for analysis of covariance when the response and covariate are not co-located.