Inadequate knowledge exists on the distribution of soil moisture and shallow groundwater in intensively cultivated inland valley wetlands in tropical environments, which are required for determining the hydrological regime. This study investigated the spatial and temporal variability of soil moisture along 4 hydrological positions segmented as riparian zone, valley bottom, fringe, and valley slope in an agriculturally used inland valley wetland in Central Uganda. The determined hydrological regimes of the defined hydrological positions are based on soil moisture deficit calculated from the depth to the groundwater table. For that, the accuracy and reliability of satellite‐derived surface models, SRTM‐30m and TanDEM‐X‐12m, for mapping microscale topography and hydrological regimes are evaluated against a 5‐m digital elevation model (DEM) derived from field measurements. Soil moisture and depth to groundwater table were measured using frequency domain reflectometry sensors and piezometers installed along the hydrological positions, respectively. Results showed that spatial and temporal variability in soil moisture increased significantly (p < .05) towards the riparian zone; however, no significant difference was observed between the valley bottom and riparian zone. The distribution of soil hydrological regimes, saturated, near‐saturated, and nonsaturated regimes does not correlate with the hydrological positions. This is due to high spatial and temporal variability in depth to groundwater and soil moisture content across the valley. Precipitation strongly controlled the temporal variability, whereas microscale topography, soil properties, distance from the stream, anthropogenic factors, and land use controlled the spatial variability in the inland valley. TanDEM‐X DEM reasonably mapped the microscale topography and thus soil hydrological regimes relative to the Shuttle Radar Topography Mission DEM. The findings of the study contribute to improved understanding of the distribution of hydrological regimes in an inland valley wetland, which is required for a better agricultural water management planning.