Citarum is the longest and biggest river in West Java, also known as the world's most polluted river. The environmental degradation in Citarum has been taking place since the 1980's, when rapid industrialization activities started in the southern parts of Bandung that led to the increase of factory wastes pollution. The revitalization and restoration program did not contribute significant results as the water pollution and environmental degradation had led to several health issues. A heavily polluted river has also increased the poverty level of populations living along the river. This paper aims to analyse the correlation between environmental degradation and poverty. The research objective is to provide input and policy evaluation to the government on issues related to environment management. In theoretical point of view, this research is a case study to demonstrate the significance of the government in increasing people’s standard of living. A descriptive analytical method is used with primary and secondary data gathering. Primary data obtained through interviews with the government actors, non-governmental organizations, and individuals. The research indicated that the river pollution was due to weakness on the government’s side, which has a lack of coordination and cooperation with other stakeholders.