The investigation and continuous monitoring with an innovative iron oxide embedded cellulose acetate membrane (FeO/CAM) on the concentrations of biologically available phosphorus (BAP) were conducted in the Meiliang Bay of the Taihu Lake during summer in 2004. The results showed that the concentrations of dissolved (FeO-DP), particulate (FeO-PP) and total bioavailable phosphorus (FeO-P) had similar horizontal distribution. The BAP concentrations were the highest in those estuaries in the northern bay. With the decrease of the distance to the estuary or long shore, there was little difference between BAP concentrations in an open lake area. During the observation period, algal blooms occurred in most waters of the northern bay, which was reflected from the high concentrations of chlorophyll a (Chl-a). While they were not highest in the estuarine waters of those major rivers, this is the case for the BAP concentrations. The concentrations of Chl-a had a significantly positive correlation with those of bioavailable phosphorus in the open area of the Meiliang Bay. With the sediment resuspension induced by wind and wave, BAP concentrations increased in a short-term, indicating that the riverine P inputs mainly contribute to the concentrations of BAP in the estuarine water while internal P release was the major source of BAP in the open lake area. In the eutrophic shallow lake, the blooms of alga may cause pH increase and further result in internal P release. The above results showed that the new membrane of FeO/CAM can be used to monitor the concentrations of BAP and provide the scientific justifications for the control strategy of the lake eutrophication.