For an underwater vehicle-manipulator system, which consists of an underwater vehicle equipped with a manipulator, it is important to regulate the position of the manipulators end-effector with respect to a given target position in many interactive operations. This paper presents a task space-based approach for designing a controller that ensures that the end-effector of an underwater vehicle-manipulator system maintains its position in the presence of unknown ocean currents and uncertainties without the explicit use of a disturbance observer. A feedback linearizing control in task coordinates is used, and an extended Kalman filter (EKF) is employed as a state observer. The proposed approach can also be applied to dynamic positioning or controlled weathervaning of a surface ship whose motion is affected by environmental disturbances. To demonstrate the validity and effectiveness of the proposed approach, numerical simulations and experimental tests were carried out and their results are shown. © 2014 Taylor and Francis.