AbstractA prototype oyster production system with a 10‐bushel design capacity has been operating for 6 months in order to demonstrate and document a number of the research‐derived design concepts and operating specifications. This is a technical demonstration project intended to maximize production rates in an intensive, controlled‐environment culture system. The unit functions as a working model yielding quantitative information concerning component and biological performance, material flow, and cost‐related material, energy and labor efficiencies over the long‐term production cycle.The system is comprised of three integrated subsystems: 1) oyster life‐support, 2) algal production, and 3) water and waste handling. The design specifications and the degree of control provided are intended to maximize productivity and efficiency in each subsystem. Integration of the three subsystems involves recycling water (˜77%) without detriment to performance efficiencies.Operation and evaluation of the system have supported some of the original premises. However, such analyses and concurrent experimentation have led to modifications in the system design, and in process procedures. The changes have reflected trade‐off decisions (for example, sacrificing production rates for economic and management considerations) and efforts to enhanc