This research analyses the diatom asssemblages recorded from six UK coastal sites and relates these diatom assemblages to tidal levels. The relationship between diatom assemblages and tidal levels is examined statistically in order to develop a diatom‐based tidal‐level transfer function. The results suggest that there is highly significant correlation between the diatom assemblages and water levels from mean high water of neap tides to highest astronomical tide (p = 0.01, 99 random permutations). A weighted average (WA) transfer function is thus established, and the predictive ability of this transfer function is highly satisfactory. Finally, this transfer function is applied successfully to estimate palaeotidal‐levels from fossil diatom data recorded in late Holocene coastal sequences. Copyright © 1999 John Wiley & Sons, Ltd.