Molasses spentwash from distilleries is characterized by high COD and colour. The fungal decolourization of anaerobically digested molasses spentwash requires significant dilution. In this study, decolourization by Aspergillus niger isolate IITB-V8 was performed on polyaluminium chloride (PAC) treated anaerobically digested spentwash without dilution of wastewater. Optimization of parameters was studied using statistical experimental designs. In the first step, Plackett-Burman design was used for screening the important parameters. Glucose was taken as the carbon source for the growth of A. niger. KH2PO4 and pH were found to be the important factors affecting decolourization. In the second step, Box-Behnken design was used to determine the optimum level of each of the significant parameters. A second-order polynomial was determined by the multiple regression analysis of the experimental data. The optimum values for the important factors to achieve maximum decolourization of 68.4% were 5.5 g/L Glucose, 1.2 g/L KH2PO4 and 5 pH. The determination coefficient (R-2) was 0.9973, which ensures adequate credibility of the model. The total decolourization obtained after fungal treatment was 86.8% which indicates fungal decolourization after pretreatment with PAC is a viable option for the treatment of digested molasses spentwash. (C) 2009 Elsevier B.V. All rights reserved.