The free water level of capillary pressure curve provide a convenient datum location.

The
relationship between height above free water level and capillary pressure is derived from
consideration of gravity and capillary pressure force equilibrium.
Using the free water level (FWL) as a datum and defined its position in the reservoir as the
place where oil phase pressure Po equals the water phase pressure Pw, then the FWL:

Po Pw = Pc (FWL)

In oil field units, P is in psi, H is in ft, is in lbm/cu ft and g/gc is unity. Then,

Pc = H (w w) / 144

Thus, capillary pressure curve can be also interpreted as height versus saturation curve as shown
below.