The ocean floor network system for earthquakes and tsunamis is one of the effective tools for the early detection of large earthquakes on plate boundaries and the tsunamis they generate. The Dense Oceanfloor Network system for Earthquakes and Tsunamis (DONET) was installed in the first rupture areas of the 1944 Tonankai and 1946 Nankai earthquakes. The DONET around the Nankai Trough, a site of huge earthquakes that have caused severe damage, has the potential to detect the genesis of a tsunami. We developed a real-time tsunami prediction system for local communities that takes advantage of the features of DONET, and we have already made it available to several local governments and a commercial company. The outputs of the prediction are the tsunami arrival time, its height, its inundation area, and inundation depth. The system makes real-time monitoring of tsunamis possible. The system should be conceptually applicable to the Nankai Trough area, which has characteristics consistent with the assumptions the system makes about tsunami propagation, crustal activities, and coastal communities. Here, we describe the conceptual basis of the system, the features used to ensure the accuracy of predictions, and the policies used to develop and implement them.