It depends on what you mean by a 'heatmap' I'm assuming you have some
data of the following form.

lat,lng,value

There are 3 different ways.

1)Colored Polygons i.e. (usnaviguide) all you do is average the data
which falls within a polygon and then draw a filled polygon with a
colour which matches the value. How to do this can be found in the
google maps api. This approach is nice and correct however you need to
define the appropriate areas.

2)Density maps. This tends to be what people mean by heat maps. There
is a commercial service which does this http://www.heatmapapi.com/ but
if you want it for free you can use my code
http://railsagainstthemachine.blogspot.com/2008/08/google-heatmaps-again.html
However please note that this approach is mathematically dubious.

3)Proper krigging / Gaussian process based interpolation
http://en.wikipedia.org/wiki/Kriging in my view this is the right way
to do heat maps however there is nothing really available at the
moment - I have some code which kind of works but has some numerical
instabilities which I may open source in the next month or so.

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