diff --git a/doc/api/index.rst b/doc/api/index.rst
index 691becc..b2a99d2 100644
--- a/doc/api/index.rst
+++ b/doc/api/index.rst
@@ -66,11 +66,12 @@ Utilities
 .. autosummary::
    :toctree: generated/
 
-    distance_mask
+    test
     maxabs
+    distance_mask
     variance_to_weights
-    test
     grid_to_table
+    median_distance
 
 .. automodule:: verde.datasets
 
diff --git a/verde/__init__.py b/verde/__init__.py
index 064cb51..2ff1b89 100644
--- a/verde/__init__.py
+++ b/verde/__init__.py
@@ -14,6 +14,7 @@ from .coordinates import (
 )
 from .mask import distance_mask
 from .utils import variance_to_weights, maxabs, grid_to_table
+from .distances import median_distance
 from .blockreduce import BlockReduce, BlockMean
 from .scipygridder import ScipyGridder
 from .trend import Trend
diff --git a/verde/distances.py b/verde/distances.py
new file mode 100644
index 0000000..639026a
--- /dev/null
+++ b/verde/distances.py
@@ -0,0 +1,101 @@
+"""
+Distance calculations between points.
+"""
+import numpy as np
+
+from .utils import kdtree
+from .base.utils import n_1d_arrays
+
+
+def median_distance(coordinates, k_nearest=1, projection=None):
+    """
+    Median distance between the *k* nearest neighbors of each point.
+
+    For each point specified in *coordinates*, calculate the median of the distance to
+    its *k_nearest* neighbors among the other points in the dataset. Sparse uniformly
+    spaced datasets can use *k_nearest* of 1. Datasets with points clustered into tight
+    groups (e.g., densely sampled along a flight line or ship treck) will have very
+    small distances to the closest neighbors, which is not representative of the actual
+    median spacing because it doesn't take the spacing between lines into account. In
+    these cases, a median of the 10 or 20 nearest neighbors might be more
+    representative.
+
+    The distances calculated are Cartesian (l2-norms) and horizontal (only the first two
+    coordinate arrays are used). If the coordinates are in geodetic latitude and
+    longitude, provide a *projection* function to convert them to Cartesian before doing
+    the computations.
+
+    .. note::
+
+        If installed, package ``pykdtree`` will be used instead of
+        :class:`scipy.spatial.cKDTree` for better performance.
+
+    Parameters
+    ----------
+    coordinates : tuple of arrays
+        Arrays with the coordinates of each data point. Should be in the
+        following order: (easting, northing, vertical, ...). Only the first two
+        coordinates (assumed to be the horizontal) will be used in the distance
+        computations.
+    k_nearest : int
+        Will calculate the median of the *k* nearest neighbors of each point. A value of
+        1 will result in the distance to nearest neighbor of each data point.
+    projection : callable or None
+        If not None, then should be a callable object (like a function)
+        ``projection(easting, northing) -> (proj_easting, proj_northing)`` that
+        takes in easting and northing coordinate arrays and returns projected
+        northing and easting coordinate arrays.
+
+    Returns
+    -------
+    distances : array
+        An array with the median distances to the *k* nearest neighbors of each data
+        point. The array will have the same shape as the input coordinate arrays.
+
+    Examples
+    --------
+
+    >>> import verde as vd
+    >>> import numpy as np
+    >>> coords = vd.grid_coordinates((5, 10, -20, -17), spacing=1)
+    >>> # The nearest neighbor distance should be the grid spacing
+    >>> distance = median_distance(coords, k_nearest=1)
+    >>> np.allclose(distance, 1)
+    True
+    >>> # The distance has the same shape as the coordinate arrays
+    >>> print(distance.shape, coords[0].shape)
+    (4, 6) (4, 6)
+    >>> # The 2 nearest points should also all be at a distance of 1
+    >>> distance = median_distance(coords, k_nearest=2)
+    >>> np.allclose(distance, 1)
+    True
+    >>> # The 3 nearest points are at a distance of 1 but on the corners they are
+    >>> # [1, 1, sqrt(2)] away. The median for these points is also 1.
+    >>> distance = median_distance(coords, k_nearest=3)
+    >>> np.allclose(distance, 1)
+    True
+    >>> # The 4 nearest points are at a distance of 1 but on the corners they are
+    >>> # [1, 1, sqrt(2), 2] away.
+    >>> distance = median_distance(coords, k_nearest=4)
+    >>> print("{:.2f}".format(np.median([1, 1, np.sqrt(2), 2])))
+    1.21
+    >>> for line in distance:
+    ...     print(" ".join(["{:.2f}".format(i) for i in line]))
+    1.21 1.00 1.00 1.00 1.00 1.21
+    1.00 1.00 1.00 1.00 1.00 1.00
+    1.00 1.00 1.00 1.00 1.00 1.00
+    1.21 1.00 1.00 1.00 1.00 1.21
+
+    """
+    shape = np.broadcast(*coordinates[:2]).shape
+    coords = n_1d_arrays(coordinates, n=2)
+    if projection is not None:
+        coords = projection(*coords)
+    tree = kdtree(coords)
+    # The k=1 nearest point is going to be the point itself (with a distance of zero)
+    # because we don't remove each point from the dataset in turn. We don't care about
+    # that distance so start with the second closest. Only get the first element
+    # returned (the distance) and ignore the rest (the neighbor indices).
+    k_distances = tree.query(np.transpose(coords), k=k_nearest + 1)[0][:, 1:]
+    distances = np.median(k_distances, axis=1)
+    return distances.reshape(shape)

diff --git a/verde/tests/test_distances.py b/verde/tests/test_distances.py
new file mode 100644
index 0000000..5906b73
--- /dev/null
+++ b/verde/tests/test_distances.py
@@ -0,0 +1,60 @@
+"""
+Test distance calculation functions.
+"""
+import numpy as np
+import numpy.testing as npt
+
+from ..distances import median_distance
+from ..coordinates import grid_coordinates
+
+
+def test_distance_nearest():
+    "On a regular grid, distances should be straight forward for 1st neighbor"
+    spacing = 0.5
+    coords = grid_coordinates((5, 10, -20, -17), spacing=spacing)
+
+    distance = median_distance(coords, k_nearest=1)
+    # The nearest neighbor distance should be the grid spacing
+    npt.assert_allclose(distance, spacing)
+    assert distance.shape == coords[0].shape
+
+    # The shape should be the same even if we ravel the coordinates
+    coords = tuple(coord.ravel() for coord in coords)
+    distance = median_distance(coords, k_nearest=1)
+    # The nearest neighbor distance should be the grid spacing
+    npt.assert_allclose(distance, spacing)
+    assert distance.shape == coords[0].shape
+
+
+def test_distance_k_nearest():
+    "Check the median results for k nearest neighbors"
+    coords = grid_coordinates((5, 10, -20, -17), spacing=1)
+
+    # The 2 nearest points should also all be at a distance of 1 spacing
+    distance = median_distance(coords, k_nearest=2)
+    npt.assert_allclose(distance, 1)
+
+    # The 3 nearest points are at a distance of 1 but on the corners they are
+    # [1, 1, sqrt(2)] away. The median for these points is also 1.
+    distance = median_distance(coords, k_nearest=3)
+    npt.assert_allclose(distance, np.median([1, 1, np.sqrt(2)]))
+
+    # The 4 nearest points are at a distance of 1 but on the corners they are
+    # [1, 1, sqrt(2), 2] away.
+    distance = median_distance(coords, k_nearest=4)
+    true = np.ones_like(coords[0])
+    corners = np.median([1, 1, np.sqrt(2), 2])
+    true[0, 0] = true[0, -1] = true[-1, 0] = true[-1, -1] = corners
+    npt.assert_allclose(distance, true)
+
+
+def test_distance_nearest_projection():
+    "Use a simple projection to test the mechanics"
+    spacing = 0.3
+    coords = grid_coordinates((5, 10, -20, -17), spacing=spacing, adjust="region")
+    # The projection multiplies by 2 so the nearest should be 2*spacing
+    distance = median_distance(
+        coords, k_nearest=1, projection=lambda i, j: (i * 2, j * 2)
+    )
+    npt.assert_allclose(distance, spacing * 2)
+    assert distance.shape == coords[0].shape

Convenience function for near neighbor distances
**Description of the desired feature**

Some applications would probably benefit from knowing the average distance between nearest data points (or the min, max, median, etc). For example, for determining the grid spacing or the `mindist` argument for `Spline`. 

This can be done with a KDTree:

```
from scipy.spatial import cKDTree
points = np.transpose([coordinates])
# Get the second closest (the closest are points themselves)
tree = cKDTree(points, k=[2])
distances, labels = tree.query(points)
distances.mean()
```

There is room for automation here to handle:

* The transposition of the coordinates and ensuring that there are only 2 1D arrays.
* Switching to pykdtree if it's installed.
* Projecting the coordinates.

A function like the following would be useful to have:

```
def neighbor_distances(coordinates, projection=None):
    ...
    return distances

spacing = neighbor_distances(coordinates).mean()
```

It could go in the `verde/coordinates.py` module.


verde/tests/test_distances.py::test_distance_nearest verde/tests/test_distances.py::test_distance_k_nearest verde/tests/test_distances.py::test_distance_nearest_projection