This study looks at how the Cambodian government might introduce a pollution levy system to address the country's industrial pollution problem. Using information drawn from a variety of sources, including a recent industrial survey, it estimates the levels of pollution charges that would reduce pollution by 25%-85%. It also calculates the overall revenue that such levies would produce and estimates the costs that industry would have to bear in terms of abatement costs and pollution charges. Based on these findings, the study proposes a phased introduction of the levy system, to produce an eventual reduction in pollution of 65%. Revenues from the scheme would initially be used to strengthen its implementation and enforcement.