A syndrome affecting cultured chinook salmon, Oncorhynchus tshawytscha (Walbaum), characterized by distended abdomens, gastric dilation, air sacculitis (GDAS), increased feed conversion rates and increased mortality has been recognized in New Zealand. Affected fish were most obvious in sea cages but were also present in fresh water. Mortality rates associated with this condition were highest in late summer and approached 6% per month. A dilated and flaccid stomach, without visible rugal folds containing copious oil, watery fluid or undigested feed was typical. Gastric mucosal ulceration or inflammation were not present. The air sacculitis consisted of a thickened, dilated bladder with a mixed mucosal inflammatory infiltrate and a luminal exudate associated with large numbers of morphologically diverse bacteria. Gastric dilation or air sacculitis occurred alone or together in the same fish. In a group of 20 subclinically affected fish with or without gastric dilation, there were no significant differences in weight, length, serum osmolality, sodium, total protein or packed cell volume. Twenty‐three severely affected fish had significantly (P < 0.05) higher serum osmolality but similar sodium and total protein to that of clinically normal fish.