Producing young ones from eggs are called hatcheries or producing young ones from eggs by incubation or brooding. Fish, Prawn and other products of water have always been a staple part of diets in many cultures and it is not surprising that man requires some control over this in due course of time .Aquaculture industry faces many problems like stable supply of seedlings , disease con- trol and adequate food supply or development of suitable artificial diets. Shrimps are now cultured in many areas and significant ex- pansion of the shrimp aquaculture industry appear likely result in acute demand for shrimp seed which mostly come through intensi- fied systems like hatcheries. Areas like Pace 20 hatchery Pvt ltd and Rajkamal hatchery Pvt ltd are selected from Thimmapuram near Bheemili The mother prawns take from sea if 7.5g to 200g and artificially grown prawn in hatcheries only has the size of 2.5 to 30 g. Rajkamal hatcheries produce 60 million production per year where as Pace 20 hatchery produce 125million production per year. This paper explains the environmental impacts of shrimp hatcheries its problems and the steps taken by the management to eradicate the problems.