Abstract-With the increase in human population in developing countries including Pakistan and shortage of canal irrigation water, people used to think about other alternate irrigation sources particularly in peri-urban areas, where most of the farming activities are depend upon waste water. Pakistan is also included in the list of those where untreated waste water application on vegetables is very common. Based on the theoretical debate on its advantages and disadvantages, the present study was designed to know about the incentives and disincentives of untreated wastewater application in vegetables. The study was conducted in the Punjab province. Quantitative data were collected through reliable and validated research instrument (interview schedule) and analyzed through SPSS. It was concluded from the results that majority of the respondents (55.8%) had education only upto eight (08) years of schooling. About 69.2% of the respondents were small land holders and considered as tenant. Majority of the majority of the vegetable growers in the research area used to grow vegetables from more than 10 years. Shortage of can irrigation water, power/energy crises in Pakistan, and high cost of fresh water through tube well were the main reasons behind application of untreated waste water for vegetable farming. Out of different incentives of waste water application in vegetables, high yield was on the top with maximum mean (x̄=4.13). Health problems were the main disincentives of wastewater application in vegetable due to its high mean (x̄=4.42) out of others. Overall mean of all the disincentives (x̄=4.61) is high compared to overall mean of all the incentives (x̄=4.13). It was recommended that water treatment facilities should be provided by the government on subsidized rates as small scale vegetable growers didn't have enough financial and physical capitals.