| Abstract | Lake Taihu is the third largest lake in China and is famous for its abundant production of fishes and crabs. Aquaculture is well developed in the east part (East Lake Taihu) and in coastal ponds around the lake. Based on review, interview and field survey, a study was conducted to identify, analyze and compare the existing aquaculture production systems such as pen culture (cage culture), pond culture and artificial stocking in the open area, in terms of productivity, economic efficiency; and environmental impact; and to assess the overall potential production for aquatic resources of the lake. Generally, in Lake Taihu basin, there are favourable support systems, and an abundance of natural resources for aquaculture. A large number of pollutants, especial nitrogen and phosphorus, mainly from industrial waste water, sewage and agriculture run-off, make the lake polluted, and some parts of water body eutrophic, which constrains aquaculture development. It is shown that, the productivity and economic results per ha varied in different culture systems, intensity and species; pond culture ranked among all systems best, second is pen culture; intensive culture is more effective than semi-intensive; pen culture fish, especial intensive culture causes pollution. In Lake Taihu, there is high development potential in terms of increasing productivity per unit area and extending total pen culture area, through improving techniques both production and management and reducing the external pollutants. The artificial stocking system could be increased by around 170 kg/ha, based on existing natural food resources. The development potential of pen culture system could be considered in two ways. In terms of unit area productivity, there is a potential to increase total fish yield up to around 5,000 MT under same large pen culture area. In addition, reducing the external pollutants such as nitrogen and phosphorus can increase the carrying capacity of the lake in relation to pen fish culture. For a 5% of total external nitrogen and phosphorus reduction, the potential of total fish yield, gross revenue and net profit could increase to 5491 MT, 459,889 million Yuan and 10,695 million Yuan, respectively, while for a 10% of total external nitrogen and phosphorus reduction, the potential of total fish yield, gross revenue and net profit could increase to 10,982 MT, 91,918 million Yuan and 26,247 million Yuan, respectively, based on 1995 data. |