With a high population density, immense commercial and industrial activities, Hong Kong produces over two million tonnes of municipal wastewater each day. Until recently, about 50% of the municipal wastewater enters water courses, rivers, and coastal waters without treatment. Untreated organics, heavy metals and refractory synthetic materials accumulate in certain areas, and have led to breakdown of aquatic and marine ecological systems, closure of beaches, red tides and bioaccumulation in seafood. In 1974, a team of consultants was commissioned to study the water pollution problems encountered in Hong Kong. After two decades in the effort to improve the water environment, a flexible framework for environmental planning and management over the following ten years has been designed. This programme comprises (1) establishment of water control zones and pollution control legislation, (2) upgrading of services and facilities for management of municipal sewage and chemical wastes, and (3) construction of the "Strategic Sewage Disposal Scheme". In line with this programme, a priority has been set on implementing a "polluter pays policy" which requires the industries to share the costs of sewage treatment and encourages them to install on-site wastewater pretreatment facilities to reduce wastewater generation and to ensure sustainable development.