The purpose of this study was to analyse the runoff characteristics of non-point pollution sources in an urban watershed and determine the effectiveness of newly installed riverwater treatment system to reduce water pollution caused by storm runoff in the urban watershed. The results of this study showed that the levels of BOD5 and suspended solid were highly influenced by first-flush effect and the pollutant load of those two parameters were also very high in the urban watershed. Meanwhile, the effectiveness of riverwater treatment system to reduce the levels of BOD5 and suspended solid was relatively high, but those to reduce the levels of T-N and T-P was low, which needs some additional unit treatment process such as filtration and coagulation. Nonetheless, the riverwater treatment system tested was relatively simple in installation and operation, effective in removing many water pollutants and, most importantly, does not require much space as other treatment systems, so it could be an attractive alternative option to reduce riverwater pollution caused by storm runoff in urban watersheds.