Many geoscience problems involve predicting attributes of interest at un-sampled locations. Inverse distance weighting (IDW) is a standard solution to such problems. However, IDW is generally not able to produce favorable results in the presence of clustered data, which is commonly used in the geospatial data process. To address this concern, this paper presents a novel interpolation approach (DIDW) that integrates data-to-data correlation with the conventional IDW and reformulates it within the geostatistical framework considering locally varying exponents. Traditional IDW, DIDW, and ordinary kriging are employed to evaluate the interpolation performance of the proposed method. This evaluation is based on a case study using the public Walker Lake dataset, and the associated interpolations are performed in various contexts, such as different sample data sizes and variogram parameters. The results demonstrate that DIDW with locally varying exponents stably produces more accurate and reliable estimates than the conventional IDW and DIDW. Besides, it yields more robust estimates than ordinary kriging in the face of varying variogram parameters. Thus, the proposed method can be applied as a preferred spatial interpolation method for most applications regarding its stability and accuracy.