Fluids in unsaturated porous media are described by the relationship between pressure (p) and saturation (u). Darcy's law and conservation of mass provides an evolution equation for u, and the capillary pressure provides a relation between p and u of the form p pc(u,∂t u). The multi-valued function pc leads to hysteresis effects. We construct weak and strong solutions to the hysteresis system and homogenize the system for oscillatory stochastic coefficients. The effective equations contain a new dependent variable that encodes the history of the wetting process and provide a better description of the physical syste