A four dimensional variational data assimilation (4DVar) based on a dimension-reduced projection (DRP4DVar) has been developed as a hybrid of the 4DVar and Ensemble Kalman filter (EnKF) concepts. Its good flow-dependent features are demonstrated in single-point experiments through comparisons with adjointbased 4DVar and three-dimensional variational data (3DVar) assimilations using the fifth-generation Pennsylvania State University-National Center for Atmospheric Research Mesoscale Model (MM5). The results reveal that DRP-4DVar can reasonably generate a background error covariance matrix (simply B-matrix) during the assimilation window from an initial estimation using a number of initial condition dependent historical forecast samples. In contrast, flow-dependence in the B-matrix of MM5 4DVar is barely detectable. It is argued that use of diagonal estimation in the B-matrix of the MM5 4DVar method at the initial time leads to this failure. The experiments also show that the increments produced by DRP-4DVar are anisotropic and no longer symmetric with respect to observation location due to the effects of the weather trends captured in its B-matrix. This differs from the MM5 3DVar which does not consider the influence of heterogeneous forcing on the correlation structure of the B-matrix, a condition that is realistic for many situations. Thus, the MM5 3DVar assimilation could only present an isotropic and homogeneous structure in its increments.Key words: DRP-4DVar, data assimilation, flow dependence, single-point experiment Citation: Liu, J. J., B. Wang, and S. D. Wang, 2010: The structure of background-error covariance in a four-dimensional variational data assimilation system: single-point experiment.