This paper presents the development of a specialized underwater leg with a manipulator function(convertible-to-arm leg) for the seabed walking robot named CRABSTER200(CR200). The objective functions of the convertible-to-arm leg are to walk on the seabed and to work in underwater for precise seabed exploration and underwater tasks under coastal area with strong tidal current. In order to develop the leg, important design elements including the degree of freedom, dimensions, mass, motion range, joint structure/torque/angular-speed, pressure-resistance, watertight capability and cable protection are considered. The key elements of the convertible-to-arm leg are realized through concept/specific/mechanical design and implementation process with a suitable joint actuator/gear/controller selection procedure. In order to verify the performance of the manufactured convertible-to-arm leg, a 25bar pressure-resistant and watertight test using a high-pressure chamber and a joints operating test with posture control of the CR200 are performed. This paper describes the whole design, realization and verification process for implementation of the underwater convertible-to-arm leg.