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Implementation of the 'polluter pays' principle through load-based licensing encourages the prevention and reduction of pollution through the financial incentive of lower pollutant fees. It encourages fairness and equity in environmental-protection licence fees among industries, based upon their individual environmental performance in reducing and managing pollution and risks and endeavours, to shift (internalisel external pollution costs from society to the pollutes It takes account of (a) pollutant load, (b) toxicity and (c) sensitivity of the receiving environment to which pollutants are released. This study shows that a coastal sewage-treatment works of 34 Mud average capacity will be better off every subsequent year with the implementation of load-based licensingat least for the period 2000-2005.