Nutrients, phytoplankton and periphyton were monitored in a 71 ha shallow, unstratified lake used for intensive cage culture of rainbow trout. Inorganic nitrogen, ortho-phosphate and suspended solids were significantly higher near the cages and the bottom and, although declining during summer, nutrients did not reach levels which limit phytoplankton growth. Microcystis aeruginosa dominated the phytoplankton, with surface chlorophyll a reaching 189 μg l-1 in August, but with no subsequent bloom collapse or deoxygenation. A sub-dominant community of 'vernal' diatoms and Pediastrum spp. persisted. Periphyton was dominated by Melosira italica-subarctica. Algal species and water quality showed the lake to be highly eutrophic. Chlorophyll values predicted from a phosphorus-dependent eutrophication model agreed with observations but light limitation by self-shading and suspended farm wastes, aided by wind-induced turbulence, is believed to control algal growth rates and biomass. Implications for environmental management of intensive freshwater cage farms are discussed. © 1990 Kluwer Academic Publishers.