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Replicated studies are advantageous for optimizing larval rearing of the Eastern oyster (Crassostrea virginica) and increasing the availability of high‐quality seed for the continued expansion of the U.S. oyster aquaculture industry. Although small‐scale systems using live algal feeds have been used successfully, rearing larvae on algae concentrate presents additional challenges. To determine the feasibility of rearing oyster larvae in small‐scale systems using algae concentrate, oyster larvae were raised for 2 weeks in replicate control (1,000 L) and microcosm (17 L) tanks. Five aeration strategies were tested in the microcosms in two separate trials. Results of this study indicate similar survival in small systems compared to controls through the appearance of eyed larvae. Accumulated algae and pink biofilm formation in microcosms using polyvinyl chloride (PVC) airlifts suggest that this aeration strategy is undesirable. One‐ and 5‐mL air injectors maintained higher overnight oxygen levels than controls. The recovery of more eyed larvae after 14 dpf in control systems may be the result of significant temperature fluctuations in microcosms. Overall, this study demonstrates that algae concentrate can be used to rear oyster larvae in small‐scale systems, providing a live feed alternative that saves space and labor in replicated studies.