A coupled system of ordinary differential equations and partial differential equations is proposed to describe the interaction of pelagic algae, benthic algae and one essential nutrient in an oligotrophic shallow aquatic ecosystem with ample supply of light. The existence and uniqueness of non-negative steady states are completely classified for all possible parameter range, and these results characterize sharp threshold conditions for the regime shift from extinction to coexistence of pelagic and benthic algae. The influence of environmental parameters on algal biomass density is also considered, which is an important indicator of algal blooms. Our studies suggest that the nutrient recycling from loss of algal biomass may be an important factor in the algal blooms process; and the presence of benthic algae may limit the pelagic algal biomass density as they consume common resources even if the sediment nutrient level is high.