This paper addresses two key issues. The first is the impact of salmon aquaculture in Chile’s southern regions since its introduction on a commercial scale in the early 1980’s. The second is an examination of the wider socio-economic benefits provided to Region X (the Region of the Lakes) by salmon aquaculture from the mid-1980s, and the extent to which these are sustainable. The conclusions to be drawn are that aquaculture has long-term benefits for Chile’s southern regions (Regions X-XII) and the national economy. However, for these long-term benefits to accrue, the state must be deliberate in its regional development strategies to ensure industrial sustainability within the regions. These strategies must include a recognition of socio-cultural change resulting from industrial transformation. With low wages and increasing capitalization of production in salmon aquaculture, future employment is unassured. This situation will have potentially devastating impacts upon more isolated communities within the southern regions, compounding existing social-economic problems relating to poverty and out-migration.