• Number of firms- This is a very important factor as this decides the unit cost of treatment. The more the firms participate, the lower would be the unit cost of treatment for each firm.
• Location of firms- This factor has a major impact on the transportation costs which strongly influences the feasibility and cost-effectiveness of a CETP.
  Presence of sewer system - This also has a positive effect on the feasibility of CETP. Proper laid out sewer lines aid in conveyance of effluents from the individual factories to the centralized facility. If no sewer line is present then good roads are essential for truck access.
• Volume and strength of waste- Firms that produce waste of small volume of concentrated waste are more likely to benefit from CETP while firms that produce large quantities of waste are more likely to find that installing their own waste treatment system is more economical. In some cases a firm can reduce it’s waste flow using recovery, recycling and waste reduction practices and then join a CETP.
• Firm size- It is also an important factor that affects the applicability of CETP. Small firms often lack the ability to raise the capital needed to install pollution control equipment. Using CETP, small firms need to implement less costly waste reduction techniques and install small storage facility.
• Existence and enforcement of waste water regulations- Existence and enforcement of regulations is the key, otherwise if such regulations are absent, firms will not take initiatives for installing onsite pollution control equipment or utilizing a CETP.

• Identifying industries in the geographic area- Identification of the industries that are the potential users of the CETP, which includes determining the number and type of industries, sources such as industrial associations, trade organisations and local governmental organisations can be consulted.
• Identifying types and volumes of wastes generated - Collecting data on the types and volumes of wastes is a complex and difficult one. Data to be collected on this aspect should reveal enough information that can distinguish among types of wastes such as organic and inorganic and should reveal the volume of diluted and concentrated wastes and the amount of total waste to be received at the CETP. Depending on the waste stream to be treated, it is determined whether a centralized facility to treat hazardous and/or non-hazardous waste is needed and will affect how a CETP is designed and managed.
• Estimating future waste loads- Collecting data about future waste generation from the concerned industries is as important as collecting data about the present load. This may be a difficult task as most of the industries do not plan for more than 2 to 3 years but estimating future loads correctly could be very useful in designing the plant capacity. And to have a provision for new industries coming in that area so as to include them also in the CETP future waste load.
• Identifying treatment options- Once the types and volumes of wastes generated by the industries are identified, the next step is to examine their compatibility and to identify potential treatment options.
• Evaluating cleaner technologies- This is the last but the most important step in the feasibility assessment and the possibility of recommending changes in the raw material, manufacturing processes or finished products to reduce waste generation. For some industries adoption of cleaner technologies should be considered along with or in lieu of development of the CETP itself.