A culture system for the commercial production of the seaweed Gracilaria parvispora using shrimp-farm effluents for fertilization and floating cage-culture for grow-out has been developed on Molokai, HI. This two-phase system produces high-quality products for direct human consumption. The mean relative growth rates (RGRs) of effluent-enriched thalli in the cage system ranged from 8.8% to 10.4% day−1, a significant increase over the growth (4.6% day−1) of thalli fertilized with inorganic fertilizer. Thalli were also grown directly in the effluent ditch, where mean growth rates of 4.7% day−1 were obtained, less than in cage-culture. In the cage-culture system, thallus nitrogen content declined without fertilization. Effluent-enriched thalli grown in the cages steadily declined in nitrogen content, to about 1%, and their C:N ratios increased to between 20 and 30. However, when nitrogen-depleted thalli were transferred to the effluent ditch for enrichment, N content rapidly increased over 5 days to approximately 3%, with a C:N ratio near 10. Benefits of this two-phase polyculture system include enhanced growth of G. parvispora and the use of effluent from commercial shrimp farms as a resource.