The development of the polychaete Capitella sp. Y from Estero del Yugo, Mazatlán, Mexico was studied under culture conditions. Capitella sp. Y has a lecithotrophic development with the production of ciliated metatrochophore larvae. A high variation in size and duration of the different developmental stages was observed, as with most of the Capitella species previously described. The median survival time was estimated as six months. The Capitella sp. Y population consists of males, females and hermaphrodites (protandrous and proteroginous individuals). Differences in developmental modes among the Capitella capitata species-complex have indicated that Capitella sp. Y do not belong to any of these previously described species. This study has shown that hermaphroditism is favoured when density of individuals is low, especially in protandrous specimens. It is suggested that hermaphroditism, as well as the ability of self-fertilization observed in Capitella sp. Y enhances the success of the population in natural environments.