A method for determining resistivity distribution of formations below a bottom of a body of water from transient electromagnetic signals acquired by imparting a transient electromagnetic field into the water and detecting an electromagnetic response thereto at a plurality of spaced apart positions from a place of the imparting includes simulating an air wave response at each of the plurality of spaced apart positions. The simulated air wave response is subtracted from the detected response to produce a subsurface impulse response at each of the plurality of positions. The subsurface impulse responses are used to determine the resistivity distribution.