This document describes the design of an underwater acoustic modem for short-range sensor networks. It discusses the challenges of underwater acoustic communication and outlines the major components of acoustic modems, including transducers, analog transceivers, and digital control platforms. The document then provides details on the design of an amplitude-shift keying acoustic modem, including the transmitter, receiver, and testing results. It concludes that the designed modem represents a low-cost alternative to existing commercial underwater acoustic modems.