A two year study was carried out to determine the effects of water quality on spat recruitment pattern at the Aquaculture Industrial Zone for mussel culture at Sebatu, Melaka. Study was carried out at three rack clusters operated by USMA, Kumpulan Ekonomi Nelayan and Individuals. The main physico-chemical parameters monitored were temperature, salinity and pH which indicated stable levels throughout the study period i.e. 29.2±1.1°C, 29+1.8 ppt and 8.6+0.8, respectively. As for the dissolved oxygen, high values ranging between 5.9 and 12.lppm was recorded with water current velocities ranging from 0.050.5 knots. Total suspended solids recorded a mean level of 41+3.3 mg/L throughout the study period which is well within the suitable level for mussels. As for the concentration of chlorophylla, levels in the coastal area were observed to be much higher as compared to the seaward area with average values of 3.7+2.6 pg/L and 2.3+0.9 gg/L, respectively. There was a notable reduction in the number of mussel spatfall peaks from two peak seasons per year as predicted in previous years to one peak/year (September to October) in this study. As for spat density, results showed that racks facing the sea attracted more spat as compared to the racks in the middle of the cluster or those facing the coast. The highest density recorded was 2547 spats per meter rope which showed 20-40% decrease in the density recruited as compared to studies carried out previously. Several recommendations to rehabilitate this area in terms of management and relocation of the racks have also been suggested in view of its declining productivity.