This research investigates interacting biological, chemical, and physical factors affecting the efficiency of microbiological wastewater treatment at the W. J. Smith Wood- Preserving Company in Denison, Texas. The treatment process consisted of collecting exhaust boiler water containing unidentified boiler treatment compounds, steam condensate contaminated with preservatives and wood extracts, plant process waters, and rainfall runoff from plant grounds. With a 5-minute residence time, wastewater was passed over 2 oxidation towers in series, each containing approximately 47,000 square feet of surface area. Suspended solids were removed from the wastewater before discharge. Various amino acids such as serine, aspartate, cysteine, phenylalanine, alanine, proline, glycine, histidine, and tyrosine significantly stimulated phenol degradation in the laboratory. The plant wastewater contained approximately 0.1 mg/l of several of the stimulatory amino acids. It was assumed that these concentrations provided maximal stimulation in the field situation. The plant wastewater also contained sufficient nitrogen to permit the organisms to degrade up to 100 mg phenol/1 of water examined. Amino acids in the wastewater probably serve as a source of microbial nutrition. Toxicity of the wastewater to fish was not caused by the presence of phenol, phenol degradation products, or traces of pentachlorophenol. The wastewater was rendered non-toxic by diluting with between 4 to 9 volumes of stream water. Toxicity could also be removed by chemical coagulation followed by activated carbon adsorption. As a result of biological treatment, the plant now discharges the treated wastewater into the municipal sewage treatment facility.