Regularized Spline with Tension (RST) is an accurate, flexible and efficient method for multivariate interpolation of scattered data. This study evaluates its capabilities to interpolate daily and annual mean precipitation in regions with complex terrain. Tension, smoothing and anisotropy parameters are optimized using the crossvalidation technique. In addition, smoothing and rescaling of the third variable (elevation) is used to minimize the predictive error. The approach is applied to data sets from Switzerland and Slovakia and interpolation accuracy is compared to the results obtained by several other methods, expert-drawn maps and measured runoff. The results demonstrate that RST performs as well or better than the methods tested in the literature. The incorporation of terrain improves the spatial model of precipitation in terms of its predictive error, spatial pattern and water balance.