Hypolimnetic oxygenation can improve water quality by decreasing hypolimnetic accumulation of reduced compounds that complicate potable water treatment. Historically, aeration systems have been undersized because designers have not accounted for increases in sediment oxygen demand (SOD) resulting from the operation of aeration systems. A comprehensive study was performed to estimate the hypolimnetic oxygen demand (HOD) in San Vicente Reservoir, a eutrophic raw water reservoir in San Diego. Chamber experiments confirmed that turbulence and oxygen concentration at the sediment-water interface dramatically affected SOD. Values ranged from under 0.2 g/m2/day under quiescent low-oxygen conditions to over 1.0 g/m2/day under turbulent high-oxygen conditions. Based on a statistical evaluation of historical oxygen concentrations in the reservoir and anticipated increases in SOD resulting from operation of an oxygenation system, a design HOD of 16,400 kg/day was estimated. This is approximately four times the HOD observed in the spring after the onset of thermal stratification. Laboratory chamber experiments confirmed that maintenance of a well-oxygenated sediment-water interface inhibited the release of phosphate, ammonia, iron, and manganese from sediments. In addition, hydrodynamic modeling using DYRESM-WQ showed that operation of a linear diffuser oxygenation system would not significantly affect thermal stratification.