Algal growth potential test (AGPT) has been used as a tool for assessing biological productivity potential in the aquatic ecosystems. This study was conducted to compare the productivity potentials of large reservoirs (Lakes Andong, Hapchon and Jinyang, and Naktong estuarine dam) and river sites (Sangju, Koryung, and Samlangjin) located in the Naktong River watershed. AGPT was conducted in both non-monsoon and mosoon season (February, April, July and September) of 2003, using Microcystis aeruginosa as a test alga. The AGPs in the reservoirs were relatively much lower than those of river sites. The river AGPs increased towards upstream close to the influent streams, while it generally decreased towards downstream. Immediately after the abrupt increase in influent discharge in summer, the AGP became similar between midstream and downstream sites. The water quality of river and reservoirs deteriorated during the drought period in accordance with AGP: it was the highest during this period. The AGPs showed the closest correlation with the P concentration, leading to the conclusion that bioavailable P is highly influential to the algal growth in both lentic and lotic ecosystems in the Naktong River watershed. Based on the AGPs, the water quality of tested sites was likely eutrophic. Our results suggest that AGPT be a useful tool in evaluating the productivity potential and trophic state of the water body as well as determining the nutrients that limit the growth of algae.