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An algorithm for open water and sea ice discrimination for Radarsat-1 ScanSAR images is presented. The algorithm is based on segmentation and local synthetic aperture radar signal intensity autocorrelation. The algorithm performance is evaluated by comparing the results to operational digitized ice charts, in which the sea ice information is based on human interpretation of multiple data sources, including remote sensing data. The algorithm locates the open water of the digitized ice charts with about 90% accuracy.