New high-speed depressurized circulating water channel was designed by using the CFD code. Flow in the channel has free surface and pressure in the test section can be depressed. In this study, Flow separation and bubble occurrence were considered in designing the contraction nozzle shape for better flow uniformity Tn the test section. To supplement velocity defect due to the free surface, nozzle injection system more effective in high-speed flow was installed instead of drum system. Necessary power and injection techniques were proposed. And guide vane arrangement was analyzed to reduce the flow resistance and keep quiet free surface from ´surging´. Wave absorber was devised to reduce the wave resistance and to prevent the entrainment of air to the diffuser.