A cavitation system for forming and imploding cavities within a cavitation chamber is provided. The system includes a hydraulically actuated driver coupled to the cavitation chamber. A cavitation piston, coupled to a hydraulic piston, forms the desired cavities during piston retraction and then implodes the cavities during piston extension. Preferably the cavitation fluid is degassed prior to hydraulically driving cavitation within the chamber. Degassing can be performed within the cavitation chamber or within a separate degassing chamber which is preferably connected to the cavitation chamber. In one aspect, a coupling sleeve is interposed between the hydraulic driver and the cavitation chamber, the coupling sleeve housing at least a portion of the cavitation piston drive rod. Preferably the coupling sleeve can be evacuated. In another aspect, a cavitation fluid circulatory system is coupled to the cavitation chamber. In-line valves on the chamber inlets allow the chamber to be isolated from the circulatory system.