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Milk parlor wastewater in a dairy operation in Hawaii was investigated for its potential treatment and reuse. Two earthen settling ponds serve as settling process and another 10 acres lagoon planted with California grass serves as a wetland. This land-based low cost treatment is popular in the U.S. mainland as well. However, it has often been found that this kind of treatment application caused many problems such as odor, potential groundwater contamination and surface water pollution. Such effluent could not meet the requirements for either disposal or reuse other than agriculture irrigation applications. Improving and integrating other cost effective biological treatment systems or component(s) to the existing lagoons may be required to meet discharge or reuse standards. Several biological treatment technologies were evaluated and investigated as alternatives. Based on the laboratory results, it was found that the anaerobic-aerobic pretreatment provided a total COD, and total nitrogen removal efficiency of 88% and 55%, respectively. The recommended system will solve major problems and make the treated wastewater reusable for floor flushing. Cost analysis estimated for the new system. The cost of new treatment system was $482,430 initial investment. Annual operation & maintenance cost will be $15,297.