The purpose of this study is not only to investigate the effects of air layer in the turbine chamber on the performance and internal flow of the cross-flow turbine, but also to suggest a newly developed air supply method. Field test is performed in order to measure the output power of the turbine by a new air supply method. CFD analysis on the performance and internal flow of the turbine is conducted by an unsteady state calculation using a two-phase flow model in order to embody the air layer effect on the turbine performance effectively. The result shows that air layer effect on the performance of the turbine is considerable. The air layer located in the turbine runner passage plays the role of preventing a shock loss at the runner axis and suppressing a recirculation flow in the runner. The location of air suction hole on the chamber wall is very important factor for the performance improvement. Moreover, the ratio between air from suction pipe and water from turbine inlet is also significant factor of the turbine performance.