Satellite estimates of hourly precipitation amount were added to the mix of radar, rain gauge, and multisensor estimates that already exist in the RFCwide Multisensor Precipitation Estimator, the software that is replacing Stage III at River Forecast Centers (RFC). The West Gulf RFC has been using the satellite estimates on a trial basis for more than a year. The estimates are derived from a version of the NOAA-NESDIS Auto-Estimator product, which is also being added to the data stream of AWIPS. We have recently used the hourly gauge observations to correct the bias of the hourly satellite estimate, by adapting a local bias correction technique developed by D.J. Seo for radar data. The technique generates a locally varying, 2 dimensional bias field that can make use of past or present rain gauge observations. With examples from Texas and Mexico, we show that the technique improved the satellite precipitation estimates by reducing their RMS error and overall bias.