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The generally accepted representation of global geoid/quasi-geoid models in a series of spherical harmonics expansion turns out to be inappropriate for geoid modelling in relatively small local areas. To obtain a resolution of a few kilometers requires the development of spherical functions to critically high degrees of expansion, which leads to instability of the solution for several reasons, which are discussed in the article. For that reason, to determine precise local model of the geoid, it is necessary to use...