A two-dimensional control volume finite element method is presented for modeling unsaturated flow in a layered soil. The mesh is arranged so that a given element is placed in only in one soil type. A mass conserved solution is employed. At each solution step a search algorithm is used to establish nodal pressure heads, on the interface between two soil layers, that are consistent with an aerial averaged moisture content. Testing of the proposed algorithm indicates no "numerical leaking" between the layers.