Life history differences and effects of physicochemical changes on macrobenthos of coastal lagoons were studied for 2 yr'at one site in the sewage-polluted, moderately enriched SykesCreek and a comparison site in the less-polluted Banana River, Florida, USA. Monthly and bi-monthly quantitative sediment samples for faunal analyses were taken from the natural substratum, and recolonization of defaunated sediments set out at 4 different times in 1 yr was monitored concurrently. The top 4 numerical dominants in natural substratum samples from Sykes Creek, i.e. the indicator species, were: Corophium ellisi, Haploscoloplos foliosus, Capitella capitata, Anomalocardia auberiana. Based on recolonization experiments all 4 were identified as opportunistic. However, the top 2 numerical dominants in the Creek (C. ellisi, H. foliosus) also relied on their abilities to exploit food and/or space. Banana River benthos contained a greater relative abundance of equilibrium species and fewer opportunistic species compared to Sykes Creek, suggesting that there has been a shift toward a life history strategy of opportunism in the enriched area. With a lag shift of 2 mo, dissolved oxygen and temperature from the Creek were strongly correlated with macrobenthic density. Also, drastic declines involving most species present were observed in early summer in 1978 and 1979 coinciding (no 2-mo lag) with oxygen/temperature extremes of < 2.5 mg 1'129 OC. These data suggest that the pollution indicator species were as intolerant of oxygen/temperature extremes as non-indicator species. Thus, the numerical dominance of the indicator species in shallow water and sand sediments in Sykes Creek can likely be explained by some combination of superior abilities related to quick invasion and exploitation of food and/or space, competitive interactions could be important. Further concurrent testing of hypotheses is needed. Investigation of the indicator concept was posed as one of the best ways to determine the effects of organic pollution on benthos.