Cavitation generated by submerged water jet can decompose and oxidize organic compounds in water. In this paper, we report the development of a new submerged water jet system, which is capable of oxidizing and decomposing organic compounds by cavitating water jet discharged through a specially devised nozzle with discharge presuure of at most 0.6 MPa. The nozzle consists of a converging part and a diverging part, and chemical reactions take place within cavitation bubbles in the diverging part, where cavitation is initiated by a number of micro air bubbles injected upstream. We use an aqueous solution of indigo carmine as a test liquid, and concentration is measured using a colorimeter. The aqueous solution is kept at the temparature of about 40℃ during experiments.