Environmental Impact Assessment (EIA) and Feasibility Studies (FS) were carried out to evaluate the potential use of treated acid mine drainage (AMD) occurring at the Kingsmill Tunnel in the Central Andes of Peru. The 11 km long tunnel drains the underground works of the Morococha Mining District and discharges about 1.25 m3/sec of AMD directly into the Yauli River in the Amazon Basin. The communities living downstream cannot use the Yauli River water due to its low pH and elevated concentrations of metals (eg Cu, Zn, Fe, Mn, As, Cd) and sulfate. Studies carried out for this project included technical feasibility, EIA, economic viability and social impact assessment phases. During the Technical Feasibility' phase, the treated AMD was produced by simulating a high density sludge (HDS) lime neutralisation/ precipitation process and was evaluated for various potential uses. Mining companies located in Morococha, in particular Centromin Peru SA, and the Water Works Company of the City of Lima (Sedapal) collaborated with Golder Associates during the studies. The Canadian International Development Agency (CIDA) provided the financial assistance. The results of the physical, chemical, biological and toxicological analyses demonstrated that the AMD could be sufficiently treated to be potentially used to supplement the drinking water supply of Lima, and for agricultural (eg irrigation and livestock) and recreational purposes. Process design and scale-up parameters were also determined for implementation of the full-scale treatment facility at the site. The use of the treated AMD as a drinking water supplement would be economically feasible.