The Great Lakes Forecasting System is a real-time coastal prediction system for forecasting, on a daily basis, the physical state of each of the Great Lakes for the next two days. Forecast variables include the surface water level fluctuation, horizontal and vertical structure of temperature and currents, and turbulence. The system uses meteorological observations, satellite data, and forecasts from numerical weather prediction models as input. Lake circulation and thermal structure are calculated using a three-dimensional hydrodynamic prediction model. Output from the model is used to provide information on the current state of the lake and to predict changes for the next two days. This information is used by scientists, government agencies, commercial operations, and the public for enhancement of commercial and recreational activity, resource management, and hazard avoidance. This paper describes system design, data acquisition and analysis procedures, the hydrodynamic model, and sample model output. The initial implementation of the system provides daily nowcasts of system variables for one lake, Lake Erie. Requirements for implementing actual lake forecasts are discussed.