This report deals with the economics of wastewater treatment and the rationale for public involvement. It looks at the various methods of managing surface water quality and various sectors that are involved in managing water quality through ambient standards. Under this section, it looks at how to set targets for ambient water quality and the economic approaches through which these targets can be achieved. This report suggests how the economic theory can be applied to wastewater treatment plans and the practical restraints when trying to implement ‘Least-cost pollution control’. It focuses on the Hebei wastewater management project and analyses it from a legal standpoint in terms of the public support. It also gives the reader an economic evaluation of the pollution control plan. Based on the extensive information presented in this report, there are conclusions on wastewater treatment.