A new humidity analysis variable has been successfully introduced into the Met Office's variational data assimilation system. The new variable uses a transformation consisting of a nonlinear normalization and a link with temperature increments that is a function of background (forecast) humidity. The normalization (which is the more important aspect) makes the new variable's errors more symmetrical and thus better represented by the variational cost function. As in the previous operational system, water vapour and cloud are combined into a single total water variable for the analysis step. The transform is now operational in both global and limited-area systems. The forecast improvements -to the mass as well as the humidity fields -are largest in the Southern Hemisphere and there is a better fit of both background and analysis to humidity-sensitive satellite channels. The results suggest that the transformation is particularly beneficial for the use of satellite data. The transform reduces the problem of negative humidities in the analysis which were more prevalent over the ocean.