An industrial wastewater containing a total Kjeldahl nitrogen (TKN) of 12.80 g l(-1) was treated in a continuously fed activated sludge reactor. The main contaminant was urea (21.52 g l(-1)), together with minor amounts of the nitrification inhibitor dicyandiamide (0.46 g l(-1)) and free ammonia (0.56 g l(-1)). The wastewater was diluted 1:1 with water and treated under alkaline conditions (pH 9.4), enabling the simultaneous hydrolysis of urea and stripping of free ammonia in one aerobic reactor. Experiments were conducted to eliminate the remaining ammonia in a separate treatment unit by nitrification/denitrification. An adapted nitrifying bacterial population was isolated which was able to nitrify at a rate of 0.1 g nitrogen l(-1) day(-1) at a dicyandiamide concentration of 0.22 g l(-1). However, this was found to be too slow for an industrial-scale operation. Therefore, separate stripping with air or steam after pH adjustment to greater than or equal to 10.5 is proposed. The diluted wastewater was treated with a hydraulic retention time of 6 days, corresponding to a volumetric nitrogen loading rate of 1.1 g nitrogen l(-1) day(-1) with an overall TKN reduction of 78.0%.