The differential system (DS) method for the identification of transmissivity and storativity is applied to a confined isotropic aquifer in transient conditions. The data that are required for the identification are the piezometric heads and the source terms, together with the value of transmissivity at a single point only, which is the only parameter value needed a priori. In particular, no a priori knowledge of storativity is needed and, moreover, the identification of transmissivity does not depend upon storativity. The DS method yields the internode transmissivities necessary for the conservative finite differences models in a natural way, because it identifies transmissivities along the internodal segments, so that a well-known formula can be applied that bypasses the difficulty of finding an equivalent cell transmissivity and an averaging scheme. In addition, the DS method takes into account several different hows all over the aquifer, so that the identified parameters are to a certain degree ＇global＇ and ＇flow independent＇. Moreover, the method allows for a piecemeal identification of the parameters, thus keeping away from the regions where wells are pumping so that a two-dimensional model can be used throughout. We test the applicability of the DS method with noisy data by means of numerical synthetic examples and compare the identified internode transmissivities with the reference values. We use the identified parameters to forecast the behaviour of the aquifer under different exploitation and boundary conditions and we compare the forecast piezometric heads, their gradients and the associated fluxes with those computed with the reference parameters.