The economic appraisal of the project should be from a regional basin viewpoint, comparing its economic costs and benefits. Judging by the evidence of our case studies, it is unlikely that schemes could be economically justified with reference only to agriculture. Faisalabad city has been selected for the purpose of the study. The treatment options include waste stabilization ponds combination of Anaerobic, facultative and maturation ponds in series. The effluent quality is defined in terms of BOD removal, Coliform reduction and removal of helminthes eggs. The pond systems have been designed for various levels of effluent quality and the resulting cost is calculated. The calculation of the cost is based on Pakistan institute of cost and contract.