Producing biodiesel from microalgae grown in wastewater is environment-friendly and cost-effective. The present study investigated the algae found in wastewater of a local dairy farm for their potential as biodiesel feedstocks. Thirteen native algal strains were isolated. On the basis of morphology and 16S/18S rRNA gene sequences, one strain was identified to be a member of cyanobacteria, while other 12 strains belong to green algae. After screening, two Scenedesmus strains out of the 13 microalgae isolates demonstrated superiority in growth rate, lipid productivity, and sedimentation properties, and therefore were selected for further scale-up outdoor cultivation. Both Scenedesmus strains quickly adapted to the outdoor conditions, exhibiting reasonably good growth and strong anti-contamination capabilities. In flat-plate photobioreactors (PBRs), algal cells accumulated predominantly neutral lipids that accounted for over 60% of total lipids with almost 70% being triacylglycerol. In addition, Scenedesmus obliquus had a high content of monounsaturated fatty acids, of which the amount of oleic acid (C18:1) was up to 27.11%. Based on these findings, the dairy farm wastewater-isolated Scenedesmus strains represent promising sources of low-cost, high-quality oil for biofuel production.