A method for partitioning genetic variance estimated from twin data into additive and dominance variances was presented using Falconer's variance component model. The effects of dominance and environmental variances on a number of heritability estimates were also reviewed. A heritability estimate, based on the analysis of variance and the genetic variance estimates presented by HASEMAN and ELSTON and CHRISTIAN et al. which utilizes all available information from twin data, was proposed and discussed. This estimate seems to be the least affected by fluctuations in the magnitudes of dominance and environmental variances.