The Data Processing System (DPS) of the Coastal Zone Mapping and Imaging Lidar (CZMIL) has been designed to automatically produce a number of novel environmental products through the fusion of Lidar, spectrometer, and camera data in a single software package. These new products significantly transcend use of the system as a bathymeter, and support use of CZMIL as a complete coastal and benthic mapping tool. The DPS provides a spinning globe capability for accessing data files; automated generation of combined topographic and bathymetric point clouds; a fully-integrated manual editor and data analysis tool; automated generation of orthophoto mosaics; automated generation of reflectance data cubes from the imaging spectrometer; a coupled air-ocean spectral optimization model producing images of chlorophyll and CDOM concentrations; and a fusion based capability to produce images and classifications of the shallow water seafloor. Adopting a multitasking approach, we expect to achieve computation of the point clouds, DEMs, and reflectance images at a 1:1 processing to acquisition ratio.