The research aims to investigate the economic and environmental implications of livestock manure and to investigate the household’s willingness to pay for clean drinking water in Islamabad. The study is based on primary data, which was collected from livestock farmers, households and agriculture farmers in Bhara Kahu. After investigating the issue this research found that society near by the livestock farmers are not satisfied from the manure management and facing a lot of issues, that are affecting them in different ways. The local residents are willing to pay for clean drinking water. The livestock farmers and agriculture farmers have no such mechanism for manure management across their areas to use that as of fertilizers. Furthermore, it is also observed that the farmers were willing to pay for the natural fertilizer in order to develop such mechanism that they can easily collect it from the sites and use it instead of artificial fertilizer. According to our estimates, if the production of manure from all the livestock farms are 22500 ton/year, then by applying the technique of manure storage only, we are able to save 765000 tons CO2 eq/yr. Our study recommends that government should take some precautionary measures such as introducing the waste tax system so that the farmers become serious about the issue of their waste production and also develop some vocational training programs so that they may deal with the waste produced and convert it into useful fertilizer like composting. Supervisor:- Dr Anwar Hussain