The black-lip pearl oyster, Pinctada margaritifera, is the source of rare, valuable black pearls. Culture of this species has proven highly lucrative in French Polynesia, with strengthening worldwide demand. The Hawaiian sub-species, P. margaritifera galtsoffi, is on the Hawaii State endangered species list. Stocks are scarce due to both natural recruitment limitations and the history of overfishing for pearl shell. The development of black pearl culture in Hawaii appears limited only by this scarcity. This sub-species attains a large maximum size, and has excellent nacre color, and should therefore produce excellent black pearls. We propose to develop a hatchery for P. margaritifera galtsoffi, in Kona, Hawaii. Standard bivalve culture methods will be adapted to this species. We are familiar with methods used in hatchery culture of other pearl oysters, and have confirmed the availability of local broodstocks. Experiments will test methods of spawning induction, water quality, larval handling, algal rations, preferred substrates and cues for settlement. if successful settlement is achieved, subsequent trials will determine the feasibility of commercial- scale spat production. We must acquire our own pearl oyster hatchery technology if America is to compete with Japan, Australia, and other countries for a stake in this lucrative market.