Economic values were computed for three water uses: water-oriented recreation, aquatic life propagation, and industrial water use. To evaluate economic benefits, the extent was determined to which effluents from paper, steel, and textile mills affected water quality. Water quality criteria were developed for the evaluation of actual water quality. The comparison of existing quality conditions to appropriate criteria determined the number of river miles which could not be used for a beneficial water use. The 64 stream miles determined unsuited for water-oriented recreation in Alabama could develop $2,000,000 annually in economic benefits under adequate pollution abatement. Pollution abatement along 89.1 stream miles which are adversely affected by effluents from steel, textile, and paper mills, would increase bordering land value $16,067 per mile per year or approximately $1.45 million annually. Annual benefits in aquatic life propagation would be $662,699. Annual savings from reduced preindustrial water treatment would amount to $356,272. The total economic benefit derived by controlling water pollution from the paper, steel, and textile industries of Alabama is approximately $4.5 million per year.