Modern ground water characterization and remediation projects routinely require calibration and inverse analysis of large three-dimensional numerical models of complex hydrogeological systems. Hydrogeologic complexity can be prompted by various aquifer characteristics including complicated spatial hydrostratigraphy and aquifer recharge from infiltration through an unsaturated zone. To keep the numerical models computationally efficient, compromises are frequently made in the model development, particularly, about resolution of the computational grid and numerical representation of the governing flow equation. The compromise is required so that the model can be used in calibration, parameter estimation, performance assessment, and analysis of sensitivity and uncertainty in model predictions. However, grid properties and resolution as well as applied computational schemes can have large effects on forward-model predictions and on inverse parameter estimates. We investigate these effects for a series of one- and two-dimensional synthetic cases representing saturated and variably saturated flow problems. We show that "conformable" grids, despite neglecting terms in the numerical formulation, can lead to accurate solutions of problems with complex hydrostratigraphy. Our analysis also demonstrates that, despite slower computer run times and higher memory requirements for a given problem size, the control volume finite-element method showed an advantage over finite-difference techniques in accuracy of parameter estimation for a given grid resolution for most of the test problems.