Konark Pulp and Paper Industries Private Limited is a medium size industry producing 1600 m3 of wastewater a day. The existing water treatment system of the industry was found to be ineffective both in performance and economy. In the present study, a new system of treatment has been developed using water hyacinth Eichornia crassipes, coagulation by lime and alum, followed by rapid sand filtration. The performance efficiency of each unit viz. Eichornia treatment; coagulation with lime, with alum, and with lime:alum combinations, and filtration was studied. Water quality parameters considered were Biological Oxygen Demand, Chemical Oxygen Demand, Dissolve Oxygen, Total Dissolved Solids, turbidity, percentage transmission, and water colour. Based on the individual performance of each unit, a continuous system has been designed and was tested. The new system of treatment could treat the wastewater to the discharge standards and also was found economically feasible. Testing culture of fish (tilapia) proved that the treated water could be safely discharged into natural waters. All fish tested, survived and remained healthy throughout the period of testing. Culture of fish further improved the water quality.