ABSTRACT In this article, we take an integrated approach to water quality management of the Ganga River, considering the hydrological and ecological integrity of the basin and the economic viability of wastewater treatment options. This basically meant giving due consideration to the quantum and pattern of surface water flows in different river stretches, the vulnerability of groundwater to pollution, the dynamics of surface water–groundwater interactions, and prioritizing regions facing scarcity of water for competitive uses and environmental water stress as well as pollution, while devising strategies for water quality management. The use of market-based instruments and institutions for creating incentives and disincentives to affect behavioral changes was explored, following the identification of regions that are high-risk vis-à-vis groundwater pollution and river pollution.