Knowledge on the reproductive biology of New Zealand freshwater eels (Anguilla australis Richardson and A. dieffenbachii Gray) is limited to changes associated with gametogenesis in the adults; details pertaining to embryonic and larval development are not available, but are of obvious benefit for a better understanding of the eel life history and for artificial propagation programmes, whether for aquaculture or conservation purposes. Therefore, eels were artificially matured and eggs fertilised with sperm from either species to investigate early ontogeny. Only eggs from A. australis hatched successfully after c. 45 h of incubation at room temperature, yielding larvae of c. 2.5 mm in length. Larvae survived for up to 5 days, by which time they had attained a length of 5.3 mm. Scanning electron microscopy of 1-and 2-day-old larvae revealed the presence of prominent free neuromasts on the head and along the flanks. Although hatching of New Zealand eels was achieved for the first time, it is strongly recommended that hormone treatment be initiated immediately following capture, well before ovarian atresia starts.