Seismic travel times from the northern California earthquake catalogue and from the 1991 Bay Area Seismic Imaging Experiment (BASIX) refraction survey were used to obtain a three-dimensional model of the seismic velocity structure of the San Francisco Bay area. Nonlinear tomography was used to simultaneously invert for both velocity and hypocenters. The new hypocenter inversion algorithm uses finite difference travel times and is an extension of an existing velocity tomography algorithm. Numerous inversions were performed with different parameters to test the reliability of the resulting velocity model. Most hypocenters were relocated