Prawn farming is gainirg importance in Southeast coast of India in recent years. Derelict area along the edge of Kallar River at Veppalodai has been developed into productive culture ponds. Potential grounds for the collection of euryhaline species of prawn have been identified in the tidal inlets along Gulf of Mannar. Culture is done in 2 seasons in a year. Juvenile prawn Penaeus indicus of model size 25-35 mm obtained from wild and stocked in August 1985 grew to marketable size of 138 mm in five months and those stocked in February 1986 are harvested from July onwards. A difference in the growth rate has been noticed in two different sets of experiments and the causes attributed mostly to the environmental features of the culture ground. Better survival and production are obtained in the summer crop. Supplementary feed was given in the form of pelletized feed ai d trash fishes. Production rate was 530-1200 kg/ha/crop although salinity ranged from 31-48 %o. The present results indicate the scope for further development of unutilized areas for culture practices by improving certain management practices.