Abstract.The development of small‐scale hatcheries is placed in perspective with olher commercial methods of fish seed production, private and public, in the north‐east region of Thailand. Case studies of six small‐scale hatcheries operated by farmers in this region are presented with details of the production, costs and returns of these farms in relation to their size, location, species of fish produced, amount of capital invested and marketing and sales strategies, Rates of return were found to be favourable, with the exception of a group‐based hatchery. The relationship between the production of carp and tilapia fry. which is believed tn be incompatible under present systems, is discussed. The wider implications of the role of small‐scale hatcheries to provide fish seed for farmers in rural areas and the future of public sector involvement are c