This paper develops an automated shallow water bathymetry procedure based on two-medium photogrammetry using high resolution satellite multispectral imagery. In this method, near-infrared band were used for sunglint elimination and rational function model (RFM) was applied for raw DEM generation. By extracting the water-land edge and interpolating edge elevation, water surface position could be determined. An approximation refraction correction model, in which all homonymy lights were regarded as intersect to the same observed point, was adopted to correct the vertical offsets. Experimental results indicate that DEM accuracy of satellite two-medium photogrammetry is better than 20% of the average depth under the circumstance of relatively calm water and rich bottom texture