The U.S. Environmental Protection Agency (EPA) has recently increased and tightened performance evaluations on municipal industrial wastewater pretreatment programs. Many of the evaluations have resulted in municipalities and industrial dischargers making substantial program changes and paying large fines into the multimillion dollar range. At the same time more severe Federal pretreatment regulations were being promulgated (July, 1990), EPA completed an evaluation on the City of Los Angeles’ (City’s) program. The City subsequently received a Notice of Violation and an Administrative Order (AO). Additionally, judicial action from the EPA, U.S. Department of Justice, and the State of California was initiated. Through effective management and competent strategy, the City has met all AO requirements and is effectively defending judicial action. Through negotiations and litigation if necessary, the City is making every effort to eliminate monetary penalties. Instead the City has proposed a City-wide waste minimization project.