In the early 1960s, an oil recovery plant near Waterloo, Ontario, discarded acid sludge in a series of lagoons that were later filled with native material. Now the oily waste is leaching laterally into a pond and stream as well as downward to the aquifer in which induced infiltration drinking water wells terminate. Some corrective measures have been undertaken by the Regional Municipality of Waterloo; however, a long-term, cost-effective solution to the problem has not yet been devised. Includes figures.