The techniques of the estimations of variance-covariance components used to be based on the assumption that there remained no systematic errors in the observations. This research brings forth the estimations of the variance-covariance components for the observation equations with systematic parameters. The proposed technique enables a more appropriate weight matrix to be formed for the network and hence more proper estimates for the unknown parameters, systematic and nonsystematic as well. The experiments indicated that there were systematic errors remained in the three leveling lines of the First-Order class I leveling network of Taiwan (2001), and that the effects due to the systematic errors on the elevations and their precisions were eliminated by adding correspondingly three systematic parameters to the three lines of the Taiwan network.