The recovery of resources or energy from waste has attracted increasing attention for environmentally sustainable development. Wastewater generated from food industries is more difficult to treat than that from municipal industries because of the high organic load. Studies have been conducted to explore the possibility of developing a process that could produce biodiesel from wastewater while removing organic matter and nutrients using oleaginous microorganisms. The lipid productivity of yeast was studied using domestic wastewater and different kinds of food industry wastewaters. The increased initial cell density of oleaginous yeast could make the process more applicable to real distillery wastewater under nonsterile conditions, with significant lipid production and the removal of organics. Whereas the process was further improved by a mixed culture of yeast and microalgae, the current technology for both biomass preparation and transesterification could be further improved to make the process more economically feasible.