Arrhenoid or masculinized female fish species of the live-bearing family, Poeciliidae, have been observed for over thirteen years in specific southern streams which receive waste effluents from pulping mills. The complex mixture of organic compounds in kraft mill effluent (KME) has inhibited specific identification of causal agent(s). However, microbially degraded phytosterols (e.g. sitosterol or stigmastanol) in experimental exposures induce the same intersexual states that characterize affected female poeciliids sampled from KME streams. KME-polluted streams often exhibit a drastic reduction of fish species diversity and degrees of physiological stress, all of which suggests reduced reproduction in surviving forms. A potential ontogenetic or developmental response is demonstrated in American eels captured in one of these streams as well. The authors examine available information, including laboratory and experimental field exposures, and suggest directions for additional research as well as the need for environmental concern.