Environmental threats to fisheries are a rising concern for fishery managers. Gulf of Mexico hypoxia is particularly concerning. In order to properly manage Gulf fisheries, the sustainability of species stock and its natural capital values should be analyzed. As an empirical effort, I use blue crab in Louisiana waters as a case study to build a bioeconomic model of blue crab under hypoxia. I apply the natural capital valuation approach to estimate the blue crab value function under hypoxia in order to assess blue crab sustainability. I find that blue crab management in Louisiana under hypoxia is not sustainable, being less so under increasing hypoxia severity. In order to manage blue crab fisheries more stably under hypoxia, regulatory agencies along the Mississippi River should continue current efforts to reduce hypoxia, and take steps to sustain more blue crab stocks by management regimes reflecting the severity of hypoxia.