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Conventional image reconstruction methods for optoacoustic tomography (OAT) assume an idealized, nondispersive acoustic medium. However, the linear attenuation coefficient and the phase velocity of acoustic waves propagating in soft tissue depend on temporal frequency and satisfy a known dispersion law. These frequency-dependent effects are incorporated into an optoacoustic wave equation, and a corresponding reconstruction method for OAT is developed. The improvement in image fidelity that can be achieved over conventional reconstruction methods is demonstrated by use of computer-simulation studies.