Potato is one of the staple crops cultivated in upland farming in Japan and is propagated vegetatively by means of tubers. However once infected with diseases, potato yield decreases significantly. And one seed potato can produce approximately only 10 potato tubers. To improve the production system of seed potatoes in Japan, Japanese government established a three-stage propagation system for the production and distribution of healthy and disease-free seed potatoes. The National Center for Seeds and Seedlings (NCSS) has a role for the production of foundation seed potatoes and strictly manages the production in isolated fields that are treated thoroughly to control pests and diseases. Recently though the distribution of foundation seed potatoes is decreasing, the number of varieties of foundation seed potatoes has increased steadily. And new varieties of potato adapted various requirements, including resistance of the golden potato cyst nematode, have been increasing. Therefore, NCSS is introducing a new method of producing minitubers (MnTs) by using hydroponic cultivation greenhouse to increase the efficiency of propagation and to rapidly disseminate these new potato varieties. In this review, we describe a seed potato production system in Japan and the production of foundation seed potatoes as an important role of NCSS.