As the KTH method for geoid determination by combining Stokes integration of gravity data in a spherical cap around the computation point and a series of spherical harmonics suffers from a bias due to truncation of the data sets, this method is based on minimizing the global mean square error (MSE) of the estimator. However, if the harmonic series is increased to a sufficiently high degree, the truncation error can be considered as negligible, and the optimization based on the local variance of the geoid estimator makes fair sense. Such unbiased types of estimators, derived in this article, have the advantage to the MSE solutions not to rely on the imperfectly known gravity signal degree variances, but only the local error covariance matrices of the observables come to play. Obviously, the geoid solution defined by the local least variance is generally superior to the solution based on the global MSE. It is also shown, at least theoretically, that the unbiased geoid solutions based on the KTH method and remove–compute–restore technique with modification of Stokes formula are the same. © 2020, The Author(s).