In this study a capillary underwater discharge, that is sustained with AC (50 Hz) voltages up to 7.5 W, is investigated. In a capillary discharge scheme, the current is, at some point along its path between two submerged electrodes, flowing through a narrow elongated bore in a dielectric material. When the current density is sufficiently high, local boiling and subsequent vapour breakdown results in the formation of a plasma wit-h-in this. capillary. At the same time the capillary emits an intense jet of vapour bubbles. Time-dependent electrical current, voltage and light emission curves are recorded for discharges in solutions of NaCl in distilled water and reveal different discharge regimes, depending on the conductivity and the excitation voltage, ranging from repetitive microsecond discharge pulses to a quasi-continuous discharge with a glow-like voltage-current characteristic.