During the early nineties the Cyprus government chose the technology of offshore cage culture to develop marine aquaculture, due to the already high exploitation of coastal land by tourism, concerns for environmental issues and the lack of sheltered inland sea sites. Currently there are 8 privately owned commercial sea cage farms, licensed for an average annual production of 150 t (mainly sea bream and sea bass). The farms are located 1-1.5 km offshore, spaced at 3 km intervals, in water depths ranging from 20-35 m. Of the main manufacturers (PolarCirkel, Dunlop, Bridgestone, Farm Ocean, etc.) the most commonly used cage is the circular 16 m-diameter "PolarCirkel" type. The report provides information on the physicochemical environment, the supporting infrastructure (both private and governmental), and the regulations for the establishment/operation of cage farms. Information is also provided on aquaculture production and on main constraints/problems facing marine aquaculture development, i.e., the small size of the farms, the scarcity of available sites, the negative public perception of the environmental impact of aquaculture and the attitudes of the inshore fishermen towards cage farms. The potential for offshore mar culture development is discussed in relation to the application of the WTO philosophy on fish imports, and the harmonization of Cyprus to the "Aquis Communautaire".