Underwater communication has become a crucial data transmission technology for commercial and military marine applications in the last few decades. However, most underwater communication applications still use analogue technologies. Recent advances in digital signal processing technology have enabled numerous applications in different fields, especially in underwater wireless communications. This paper presents a digital underwater communication system, which transmits and receives acoustic signals via hydrophones employed as acoustic transmitters and receiver units. In this study, coding and modulation methods were also implemented in the prototype through a series of simulations.