In this paper a novel Rotary Permanent Magnet Magnetic Refrigerator (RPMMR) is described. The principle of operation of the presented magnetic refrigerator is based on the AMR thermodynamic cycle. Gadolinium is selected as magnetic refrigerant and demineralized water is employed as regenerating fluid. The total mass of gadolinium (1.20 kg), shaped as packed bed spheres, is housed in 8 regenerators. A magnetic system, based on a double U configuration of permanent magnets, provides a magnetic flux density of 1.25 T with an air gap of 43 mm, while a rotary vane pump forces the regenerating fluid trough the regenerators. The operational principle of the magnetic refrigerator concerned, the description of the development process and initial experimental results for certain key elements are shown.