Photoproduction of H-2 by the photosynthetic bacterium, Rhodopseudomonas, and the cyanobacterium Anacystis, grown in the dairy and sugarcane waste waters was investigated The growth and H-2 production capacity of these organisms were maximum in 50-60% concentrations of the industrial effluents. Both Rhodopseudomonas and Anacystis cells showed 70-90% growth in the effluents and they could produce as much as 50-60% H-2 when compared to those grown in the normal culture media.