This invention provides an in-tank dispenser for feeder fish and other aquatic live food that provides a separate enclosure residing within the larger main tank in a manner that allows the main tank's conditioned and heated water to flow through the enclosure. Feeder fish reside within the enclosure, allowing them the benefit of the main tank's filtered and conditioned water while separating them from the larger fish of the main tank until feeding time. At feeding time, a manually or automatically operated door is opened, allowing the feeder fish to access a funnel shaped outlet that is large enough for the feeder fish to pass therethrough, but small enough to restrict return of the feeder fish once they exit or to allow larger fish to enter the enclosure. The door can be perforated, and can be flapped opened and closed to help urge feeder fish into the area of the funnel. The enclosure can, likewise, be perforated to allow passage of water therethrough. In one embodiment, the door is actuated by a pivoting lever arm that extends upwardly above the rim of the main tank. The lever arm can include a holding or locking mechanism that retains the door in an opened or closed position as needed. Alternatively, the door can be actuated by a motorized actuator that is connected to a power source and a switch and/or timer.