Developing countries are facing a major challenge in protecting their public health due to the degradation of water and land resources being caused by water pollution. In Pakistan, lack of (a) proper planning, (b) sincerity and motivation, (c) enforcement of water quality standards, (d) environmental awareness in public, and (e) decision making is resulting in serious deterioration of water and land resources. Industrial and municipal wastewaters are usually disposed of without treatment to the nearest available receiving water bodies. The available statistics show that less than 1% of the highly polluting industries in the province of Punjab have satisfactorily operating treatment plants. The figures of other three provinces are much the same or even worse. However, the industries or the municipalities are not to be blamed alone. Environmental advocation, sincerity in enforcement of environmental legislation, and timely political decisions, which are primary factors in achieving environmental preservation goals, have remained disregarded in Pakistan. In addition to these, deficiency in technical skill and high capital investment have hindered the practical application of municipal and industrial wastewater treatment. In view of the fact that developing countries cannot afford highly expensive and complex technology, anaerobic wastewater treatment has emerged as a viable solution for their water pollution control problems. The tropical conditions of Pakistan are very favorable for the simple, low cost, and high rate anaerobic wastewater treatment technology.