The circulation and water masses of Port Foster, Deception Island, were studied using conductivity-temperature-depth stations inside and outside the semi-enclosed bay and an array of bottom temperature sensors moored around the perimeter of the bay over two weeks in the summer of 2012. Inside Port Foster, the water column is divided into two layers separated by a temperature-forced, seasonal pycnocline at ~40–60 m. The circulation of the upper layer is in an anticlockwise direction, with mean geostrophic currents of ~0.04–0.10 ms-1. The lower layer, from ~60 m to the seabed, shows coastal-trapped waves travelling in a clockwise direction, possibly triggered by local wind gusts. Local sea ice melt in areas surrounding the underwater hot springs of Pendulum Cove appears as a fresh, warm anomaly down to 30 m.