This paper is concerned with the circulation of water masses and enrichment in inorganic nutrients in the Pagassitikos Gulf, an enclosed basin on the western coast of the Aegean Sea, during 1975-1976 and 1982. The distribution of temperature, salinity and density in the water column indicated the following features: low salinity surface water predominantly related to freshwater runoff; a subsurface water mass, apparently formed by the mixing of fresh with open sea waters; a thermocline; and deep bottom water with open sea characteristics. The seasonal variation in the pattern of surface salinity suggested an anticlockwise water circulation throughout the embayment. The distribution pattern of nutrients and nutrient ratios were compared with previous studies of neighbouring areas and other isolated basins