In this paper, we propose a model which predicts the timing, location and form of early eastern Mediterranean fishing villages. A submerged late 9th-7th millennium BP settlement off the Carmel coast of Israel is described and presented as a case study to consider the initial development of Mediterranean fishing villages which would have been based upon a combined agro-pastoral-marine economy. The unique development of water-well technology enabled late 9th millennium BP populations to occupy previously unsettled territories near the coastline and to exploit marine and terrestrial resources simultaneously. This complex economy enabled year-round occupation of settlements and a relatively secure subsistence, based on agriculture, animal husbandry and fishing, supplemented by hunting and foraging. During the subsequent Pottery Neolithic (PN) period, olive oil was added to the Mediterranean subsistence base, and on the verge of historical times the production of wine completed the formation of the traditional Mediterranean economy as it is known today.