The aim of this work was to study algal floway (AFW) to treat urban wastewater and to evaluate biomass productivity, lipid contents and biodiesel production. The results indicated the seasonal average algae productivity of 34.83 g dry weight m2 d-1 with a nutrient removal rate of 2.52 g m2 d-1N and 1.25 g m2 d-1P while the lipid content ranged between 14 and 22% of dry cell weight with the highest lipid productivity of 9.29 g m-2 d-1 during summer. Biodiesel quality was superior during summer with high centane number and cold filter plugging point values. High eicosapentaenoic acid content was found during winter growth cycles. AFW algae community was dominated by pennate diatoms during all growing seasons. This study is one of its kinds in Indian wastewaters and it provides fundamental information for further optimization and use of AFW to treat domestic wastewater and to produce algae biofuel feedstock.