High-rate anaerobic treatment systems such as the Upflow Anaerobic Sludge Blanket (UASB) reactor have gained increasing popularity in recent years due to their high capacity and relatively low operating cost. Treatment of high strength industrial wastewater using these systems has substantial benefits in operating costs compared to anaerobic systems. These treatment plants are being used in an increasing number of industries such as food processing breweries, dairy, etc. A research programme on water and environment issues relating to the sugar industry has been undertaken at the University of Mauritius since 1991. Pilot UASBs have been operated in the laboratory and at sugar factories to determine design criteria. Within the context of promoting the use of biotechnology for environmental protection, funding was secured from the Mauritius Research Council (MRC) for a period of three years ( 1995 to 1998). A water and wastewater auditing exercise has shown that, for effective wastewater management it is necessary to separate the wastewater generated into 3 main streams. The segregation of these streams has been done during the 1996 premilling season. Only the most polluting stream containing the mill house wastewaters, floor wash, spillages and miscellaneous condensates and cooling waters will undergo treatment in the UASB. A 50m3 demonstration plant was designed and the plant was constructed by Advance Engineering Co. Ltd. following a tendering procedure. The major aim of this project was to build a demonstration industrial scale plant for wastewater treatment in collaboration with Rose Belle Sugar Factory. The second phase of the project which is also funded by the Council, will consist of the start up of the reactor and its operation to determine optimum operation criteria.