James Cameron did indeed build a real, highly advanced underwater studio environment to create the groundbreaking underwater scenes for the Avatar films, particularly for “Avatar: The Way of Water.” This was not just a typical soundstage or green screen setup but a massive, state-of-the-art water tank designed specifically to capture underwater performance in a way never done before in filmmaking.
To achieve the unprecedented underwater motion capture technology required for the Avatar sequels, Cameron and his team constructed a gigantic 680,000-gallon water tank. This tank served as a controlled environment where actors could perform underwater scenes while their movements were captured with cutting-edge performance capture technology. The actors also underwent extensive training to free dive and perform naturally underwater, which was essential for the realism Cameron sought in depicting the oceanic world of Pandora[1][2][3][4].
This underwater studio was part of a broader effort to push the boundaries of visual effects and performance capture. Cameron’s team combined traditional filmmaking techniques with innovative technology to create the immersive underwater sequences. The tank was equipped with specialized cameras and sensors that could operate underwater, capturing the actors’ performances in real time. This allowed the filmmakers to blend live-action underwater acting with computer-generated imagery seamlessly[1][2].
The making of this underwater studio and the technology behind it is documented in the two-part Disney+ documentary “Fire and Water: Making the Avatar Films,” which premiered on November 7, 2025. The documentary provides an in-depth look at how the underwater scenes were created, featuring behind-the-scenes footage, interviews with Cameron and the cast, and insights into the technical challenges and innovations involved. It highlights the extensive locations used for filming, including the massive water tank, as well as open water shoots in places like the Bahamas and New Zealand[1][2][3][4][6].
In summary, James Cameron did not just simulate underwater scenes with CGI or traditional green screen methods. Instead, he invested in building a real underwater studio environment—a massive water tank equipped with advanced performance capture technology—to authentically capture the actors’ underwater performances. This approach was a key factor in the visual and emotional impact of the underwater world in the Avatar sequels, setting new standards for underwater filmmaking technology[1][2][3][4].

