This article characterizes anticipated changes in fleet structure, vessel harvesting activity, and economic performance in the Pacific Coast groundfish fishery under an individual fishing quota management program. Results suggest that the current fleet of 117 vessels will be reduced by roughly 50%–66% to 40–-60 vessels, resulting in annual cost savings of $18–$22 million (based on 2004 price and cost estimates). However, cost savings could be significantly less if restrictions on quota trading across vessels are incorporated into the program design. Alternative modes of collecting fees to fund program administration and their impact on fleet size and total fishery value are also studied. We conclude that a program of individual fishing quotas, if carefully designed, can be an attractive alternative for management of the Pacific Coast groundfish fishery.