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Abstract: Collateral Channel is a heavily polluted former navigation slip to the Chicago Sanitary and Ship Canal (Illinois, USA). Characterization of sediment cores taken in the channel show high levels of heavy metals, polycyclic aromatic hydrocarbons (PAHs) and other contaminants in deposited sediment dating back to the 1800''s. Of these, PAHs were the contaminants of greatest concern based upon exceedance of sediment contamination criteria (Σ16 PAHs up to 1500mg/kg). Benthic animal counts revealed a lack of biodiversity, with relatively low levels of small tubificid oligochaetes (generally <3000/m2) in surficial sediments. Comparison of surficial sediment contaminant levels between 1995 and 2005 showed few decreases in contaminant levels, indicating a lack of “natural recovery” processes occurring in the channel. These results led to an analysis of sediment amendments for an active capping demonstration project in the channel using transport models developed in our previous work (Viana et al., 2008). Based on the sediment characterization and modeling results, the active capping design will be focused on organic contaminant sequestration through the use of organoclay. A site-specific difficulty is the substantial rates of gas ebullition from anaerobic organic matter biodegradation in the sediments, particularly in the summer months. These gases can open advective channels that may result in substantial pollution release and compromise cap effectiveness, and thus the capping scenario must control for such releases. The active capping layer will underlay a sloped sand layer and a high permeability gas venting system to allow biogenically-produced gas migration to shoreline collectors through an innovative support grid. The cap will include an overlaying wetland to remove nutrients from the adjoining Chicago River and provide a public recreational space. [Copyright &y& Elsevier]