Whole effluent toxicity (WET) tests are increasingly used to monitor compliance of consented discharges, but few studies have related toxicity measured using WET tests to receiving water impacts. Here we adopt a four-stage procedure to investigate the toxicity and biological impact of a point source discharge and to identify the major toxicants. In stage 1, standard WET tests were employed to determine the toxicity of the effluent. This was then followed by an assessment of receiving water toxicity using in situ deployment of indigenous (Gammarus pulex) and standard (Daphnia magna) test species. The third stage involved the use of biological survey techniques to assess the impact of the discharge on the structure and functioning of the benthic macroinvertebrate community. In stage 4, toxicity identification evaluations (TIE) were used to identify toxic components in the effluent. Receiving-water toxicity and ecological impact detected downstream of the discharge were consistent with the results of WET tests performed on the effluent. Downstream of the discharge, there was a reduction in D. magna survival, in G. pulex survival and feeding rate, in detritus processing, and in biotic indices based on macroinvertebrate community structure. The TIE studies suggested that chlorine was the principal toxicant in the effluent.