The production of cultured eel in Japan has decreased in the last six years. The volume of production of cultured eel maintained about 38,000 metric tons (mt) per year from 1985 to 1992, but markedly decreased since 1994. The production of cultured eel in 1998 and 1999 was 21,985 and 22,836 mt, respectively, a reduction of almost 50% compared to that in mature stage. This suggests that the eel aquaculture in Japan has been entering the decline stage. In contrast, the consumption of eel in Japan has steadily increased from 16,730 mt in 1970, 80,000 mt in 1985, to 136,955 mt in 1999. The gap of eel consumption and production in Japan is filled up by imported eels from China and other Asian countries. The volume of imported eel increased from 38,000 mt in 1985, 106,000 mt in 2000, rising about 3 fold, with the bulk of imported eels coming from China. Why is the eel aquaculture industry declining? In this report, the status of eel aquaculture in Japan and the reason for its decline are discussed.