Pulsed arc electrohydroulic discharge (PAED) has been proposed as a water treatment technology for the removal of chemical and microbial contaminants. In this work, we examined the fundamental characteristics of a PAED system with an eccentric electrode cylindrical reactor. Phosphate-buffered saline (PBS) water was used in lieu of tap water, because the conductivity of PBS is much higher than that of tap water. The results show that the voltage and current waveforms generated in PBS and tap water are very different due to the higher conductivity of PBS. Strong pressure waves and UV emission were also observed in PBS.