Ten species of fish made up more than 95 percent of the standing crop of the total fish assemblage of a shallow-water eelgrass meadow in southeastern Australia. The relative abundance of each species remained fairly constant from year to year during a four and a half year period. Four species were permanent residents, three moved over the meadow at high tide, and the juveniles of three species changed residence status as they grew. Most species exhibited distinct diel patterns of activity, four species were diurnal and five were nocturnal. Species foraged in different microhabitats and dietary overlap was very low amongst all but two species which had overlapping habitat, prey and prey size preferences, but had different diel activity periods. Data on production by prey and consumption of prey by these two fish species indicated that competition for food was probably responsible for the temporal separation of feeding niches. Predation by birds and fish appeared to be the major influence on the diel activity period of one fish species. The maintenance of the patterns of resource allocation among the remaining species is discussed and the organization of different seagrass fish faunas is compared.