Catalysts that allow for selective oxidation of organic compounds in solution are useful tools in chemical synthesis, waste remediation, and renewable energy storage schemes. Of these, iridium oxide and, iridium-based molecular compounds are frequently employed as catalysts to oxidize substrates ranging from small organic molecules to water. Here, we study the mechanism and evaluate the potential of iridium-based catalysts for small molecule oxidation in wastewater treatment, using lactic acid as a substrate. By investigating the reaction products, kinetic isotope effects, and electrochemical properties of iridium oxide and a molecular analogue on a high surface area antimony-doped tin oxide (ATO) support, we find evidence for a new iridium-catalyzed pathway for lactic acid oxidation. Applying this at concentrations representative of effluent from dairy production processes, we show that iridium oxide can selectively remove small amounts of lactic acid from water by oxidizing it to CO2 with concomitant cathodic production of H-2 by proton reduction.