This report outlines the design of a versatile low cost 'Precision Turning Machine with a Limited Milling Facility' which automatically produces work accurately to the required fora at a high production rate. The moving headstock and cross-slide have independent hydrostatic slideways. The headstock spindle and hydraulic rotor have internal hydrostatic bearings and the cross-slide toolpost can present both static and rotating, tools to the work. A sequencing circuit enables any one of sixteen tools to be selected from a magazine. General assembly drawings arc included of every machine feature together with proving calculations testing, the validity of the design. The aspects of work-loading, cutting lubricant and swarf removal are discussed in the report which concludes with recommendations for the future.