In Taiwan, eel aquaculture is the most important sector of the aquaculture industry. The species cultured is mainly the Japanese eel Anguilla japonica. Both the warm weather and fine quality of groundwater in Taiwan are very suitable for the growth of Japanese eel, which are easily stocked in outdoor ponds for intensive culture. Owing to the endeavor of eel farmers and the government's guidance over the past years, the development of the eel aquaculture industry went through the embryonic stage in the 1950s, transition stage in the 1960s, expansion stage in the 1970s, and prosperous stage in the 1980s. In the 1990s, because of the acute shortage of elvers and strong competition for the Japanese market from mainland China, the depression stage emerged. Whether the sustainability of eel aquaculture in the 21" century can be achieved is an urgent issue. The production cost must be further reduced, the product quality must be elevated and the domestic markets must be expanded to keep the industry playing an important role in Taiwan's aquaculture industry.