From January 9 to 17, 1981, detailed observations of the horizontal and vertical structure beneath one of the quasi-permanent semi-stationary mesoscale offshore eddy signatures in the California Current System (CCS) discussed by Bernstein, Breaker and Whritner (1977), Burkov and Pavlova (1980), and Simpson (1982) were made. The vertical sections of temperature and density show the presence of three-layer system. A subsurface warm-core eddy, whose diameter is about 150 km at the 7°C isotherm, is the dominant feature. A warm surface layer, which extends to a depth of 75 m, lies over the eddy. Between the warm surface layer and the subsurface warm-core eddy, there is a cold-core region which extends to a depth of about 200 m. There is a high degree of symmetry about the vertical axis of rotation. Vertical sections of salinity and dissolved oxygen are entirely different from sections of temperature and density. Diagrams of water mass characteristics confirm that the core of the eddy, found between 250–600 m, consists of inshore water from the California Undercurrent (CU). Below about 700 m, local waters from the Deep Poleward Flow (DPF) have been incorporated into the eddy. The observed distributions of properties (T, S, δ θ, O 2) are inconsistent with a single, local generation process for the eddy system. Radial distributions of angular velocity, normalized gradient velocity and relative vorticity support the use of a Gaussian radial height field as an initial condition in eddy models. Possible reasons why CCS eddies may differ dynamically from Gulf Stream rings are given in the text. At the time the observations were made, the system as a whole was in near geostrophic balance. Local geostrophic balance, however, cannot explain the observed distribution of properties and structure. The observed symmetry in the structure of the eddy system, chemical evidence (Simpson, 1984), biological distributions (Haury, 1984) and satellite images of the CC (Koblinsky, Simpson and Dickey, 1984) suggest that lateral entrainment of warm (oceanic) and cold (coastal) water into the upper two layers of the three-layer system by the subsurface eddy is a likely generation mechanism for the cold-core region. The coastal origin of the frontal structure along the northeastern quadrant and the oceanic origin of the frontal structure along the southwestern quadrant of the eddy system further support lateral entrainment as a generation mechanism for the cold core. This entrainment makes the CCS eddy system different from cold-core rings in the Gulf Stream and rather similar to some warm-core eddies found in the East Australian Current. The presence of CU water in the core of this eddy raises the question of how CU water was transported from the continental slope. Eddy generation mechanisms, other than baroclinic instability of the CC, may be required to explain the distribution, persistence, and core composition of offshore mesoscale eddies in the CCS. There is evidence that barotropic, in addition to baroclinic, processes may be important.