The performance of a single-cylinder, direct-injection diesel engine was measured with intake oxygen levels of up to 35% and fuel water contents of up to 20%. Because a previous study indicated that the use of a less-expensive fuel would be more economical, two series of tests with No. 4 diesel fuel and No. 2 diesel fuel were conducted. To control the emissions of nitrogen oxides (NO(subscript x)), water was introduced into the combustion process in the form of water-emulsified fuel, or the fuel injection timing was retarded. In the first series of tests, compressed oxygen was used; in the second series of tests, a hollow-tube membrane was used. Steady-state engine performance and emissions data were obtained. Test results indicated a large increase in engine power density, a slight improvement in thermal efficiency, and significant reductions in smoke and particulate-matter emissions. Although NO(subscript x) emissions increased, they could be controlled by introducing water and retarding the injection timing. The results further indicated that thermal efficiency is slightly increased when moderately water-emulsified fuels are used, because a greater portion of the fuel energy is released earlier in the combustion process. Oxygen-enriched air reduced the ignition delay and caused the heat-release rate and cumulative heat-release rates to change measurably. Even at higher oxygen levels, NO(subscript x) emissions decreased rapidly when the timing was retarded, and the amount of smoke and the level of particulate-matter emissions did not significantly increase. The single-cylinder engine tests confirmed the results of an earlier technical assessment and further indicated a need for a low-pressure-drop membrane specifically designed for oxygen enrichment. Extension data set indexed separately. 14 refs.