Since late 1970's, the Indonesian government has implemented a price support policy on paddy and a price subsidy policy on fertiliser for paddy production. These policies had been successful both in increasing fertiliser use as well as paddy production. Increase in fertiliser use, in particular nitrogen fertiliser, however, also means increase in nitrate contamination in ground water. Nitrate contamination in ground water exceeding 10 NO3 mg/L is known to cause "blue baby" syndrome or methamoglobinaemia and stomach cancer (Lebby and Bogges, 1990.) As most of rural population in Java depends on ground water as a source of drinking water, nitrate contamination poses serious threat to society and should be mitigated immediately.