The high cost of cooling the cryoshroud in a molecular beam epitaxy system has been greatly reduced by replacing liquid nitrogen (LN2) as a coolant with a silicone polymer heat transfer fluid cooled to as low as −80 °C by a closed cycle chiller. Gallium arsenide epitaxial layers have been grown with two different cooling configurations of the shroud: conventional LN2 cooling and cooling to −70 °C with the chiller. The partial pressure of water in the chamber is a factor of about 2.5 higher with the closed cycle chiller operating at −70 °C than with liquid nitrogen in the shroud. No significant difference is observed in the density of deep levels in the GaAs, as determined by deep level transient spectroscopy.