📙 The study aims to analyze existing water pollution problem in chemical industries and to suggest possible measures to abate the pollution problem.In India there are sufficient evidences available related to mismanagement of industrial wastes.Although all industries function under the strict guidelines of Central Pollution Control Board but still the environmental situation is far from being stable.The method used to tackle the problem of the industrial water pollution is end of pipe treatment solutions like Central Effluent Treatment Plants,but it has become outdated and has shown clear sign of failure.So the new way of abatement for industrial pollution is Prevention, whereby stress is been given to reduce pollution at the very source of its production.By understanding the correlation between Cost of Abatement and Level of Waste Water Discharged in terms of Marginal Expected Penalty and Marginal Abatement Cost,an Optimum level of Pollution has been chalked out to control pollution levels. It will require initiatives on behalf of the Pollution Control Board and the individual industries to adopt new/upgraded technologies to abate industrial water pollution.