The Huai Luang Basin is located in the Udonthani Province of Northeast Thailand. The basin is a repository of wastes coming from households, restaurants, hotels, agricultural lands, pig farms and other highly industrialized zones. Huge amounts of agricultural residues and wastes are left in the field annually. Most of the local farmers are poor and have never used modern technologies to utilize residues and wastes. There are areas where wastewater is being dumped directly into the river without any treatment. Not enough sewage plants in the cities as well as a lack of strong policies to regulate wastewater management have resulted in the Huai Luang River being classified as fair status and partly polluted, particularly in zone 2 of the municipality of Udonthani. These conditions can be attributed to high population density and industrialization. The water pollution is largely associated with land based activities such as urbanization, industrialization and agricultural. The major sources of pollution that pose problems for water quality in the basin are domestic sewage and agricultural activities, different amounts of pollutant loading depend on the ecological and socio-economic conditions in each zone. The main pollutants in zone 2 where the capital city is located come from household and industrial activities. In this paper, the biomass resources, water quality, the environment and land uses are examined and evaluated. Pollutants in terms of BOD loading from households and agricultural activities in the basin were estimated for the year 2006. An integrated approach to reduce pollutant discharge into the river is outlined. A mathematical model was also developed to encourage the adoption of biomass utilization technology to improve the water quality of the Huai Luang River. Based on the results, a policy to utilize biomass utilization technologies was determined to be a very effective tool to reduce environmental pollutants in the basin. JEL Classification: C61, Q01, R11