An experiment to rear carp seed was conducted in Tamil Nadu, India during October 2001 to April 2002 as a part of an ambitious programme aimed at standardization of pen fish rearing technology for production of stocking material of desired size at a lower cost. The experiment used six pens erected using locally available materials in the exposed marginal area of an existing reservoir. The high survival rate of carps (67.2-94.7%) and reasonable returns on investment (26.2%) obtained in the experiment indicated that fish seed rearing in pens erected in suitable areas of existing reservoirs could serve as a cheaper alternative to the expensive land-based nursery ponds.