Physicochemical and bacteriological status of a local textile mill effluent showed considerably high values of temperature (40 degrees C), pH (9.50), EC (3.57mus/m), BOD (548mgl(-1)), COD (1632mgl(-1)), TSS (5496mgl(-1)), TDS (2512mgl(-1)), heavy metals ions (0.28-6.36mgl(-1)) and color above the prescribed fresh water limits. However, a considerable decline in almost all pollution indicators from source to sink indicated signs of natural remediation. Ten bacteria strains isolated from effluent showed comparatively higher resistance (MRL) (mgl(-1)) (average) for 10 heavy metals than against four structurally different dyes tested on solid media of mineral salt. Overall bacterial resistance was quite high against Fe(3+) (2820), Cr(3+) (1203), Zn(2+) (1122), Mn(2+) (804) and Pb(2+) (435), whereas, it varied amid 300-500 in four dyes. Bacterial decolorization/degradation of dyes indicated on solid media was confirmed through experiments carried out in liquid broth.