System Optimization of Industrial Waste Treatment Design is a challenging topic in view of the ever-increasing pollution problems and the rapid development of new processes. An optimization procedure which integrates dynamic programming techniques into existing process design principles is presented. With the objective to identify the optimum combinations of various unit processes in a multistage plant, the most economic decisions are derived while meeting the ultimate design criteria. The analytical procedure utilizes the method of decision inversion in dynamic programming. A numerical example for typical paper and pulp industrial waste treatment design is presented for illustrative purposes. Many practical cost functions have also been developed for the analysis of the pulp and paper industrial wastewater treatment system which consists of different process alternatives.