Municipal wastewater is water and pollutants that arise from households, for instance, laundry, cooking, and toilets. It also consists of stormwater and water from industries and hospitals. Municipal wastewater contains BOD, nutrients (mainly nitrogen and phosphorus), persistent chemicals, metals, and oil. The reuse of treated effluent (for agriculture and as a supplement for drinking water needs) is currently receiving attention as a reliable water source. This paper is aimed at reviewing the environmental and health impacts of untreated or inadequately treated wastewater effluents. The quality of wastewater effluents is responsible for the degradation of the receiving water bodies. This is because untreated or inadequately treated wastewater effluent may lead to eutrophication in receiving water bodies and also create environmental conditions that favour the proliferation of waterborne pathogens of toxin-producing cyanobacteria. Since large amounts of wastewater effluents are passed through sewage treatment systems daily, there is a need to remedy and diminish the overall impacts of these effluents on receiving water bodies. In order to comply with wastewater legislation and guidelines, there is a need for adequate treatment before discharge. This can be achieved through the application of appropriate treatment processes, which will help to minimize the risks to public health and the environment. To achieve unpolluted wastewater discharge into receiving water bodies, careful planning, adequate and suitable treatment, regular monitoring, and appropriate legislation are necessary.