Abstract With a dramatic expansion over the past two decades, aquaculture has now become a world-wide aqua-industry and kept the global fisheries production increasing despite the levelling off the capture fisheries. Annual production from this new industry now approached to 30 million tonnes, while the captures fisheries almost levelled off around 90 million tonnes. Inland aquaculture still continues to play a significant role, but rapidly developing coastal aquaculture produced 43.1% of aquaculture output in 1997. However, aquaculture is not only a producer of aquatic food but also a consumer competing for infinite resources and rapid development brought some problems as well. Therefore, sustainable development such a. rate to compensate and ultimately supplement the traditional fisheries in new millennium depends on addressing resource allocation and. environmental interactions within the broader framework of integrated environmental management programmes. This article reviews the recent developments in coastal aquaculture and discusses the available resources and constraints limiting the sustainable development. In particular, the way in which coastal aquaculture interact with the environment has been evaluated..