Hypo sludge is also known as paper industry waste. Paper making generally produces a large amount of solid waste. This paper mill sludge consumes a large percentage of local landfill space for each and every year. To reduce disposal and pollution problems emanating from these industrial wastes, it is most essential to develop profitable building materials from them. The quantity of sludge varies from mill to mill. This hypo sludge contains low calcium and maximum calcium chloride and minimum amount of silica. Hypo sludge behaves like cement because of silica and magnesium properties. So Hypo sludge may be used as partially replacement of cement. So we can use Hypo sludge as a partial replacement of cement in pervious concrete. In this research study the (OPC) cement has been replaced by hypo sludge accordingly in the range of 10% and 20% by weight of cement for 0.30, 0.35, and 0.40 water/cement ratio. The compressive strength test and flexural strength test was carried out for 7, 14 and 28 days to measure the compressive strength and flexural strength of concrete. So the aim of the investigation is to study the behaviour of pervious concrete while replacing the hypo sludge with different proportions in concrete. Test results have reflected, the compressive strength and flexural strength achieved up to 20% replacement of cement with hypo sludge will be optimum without effecting properties of fresh and hardened concrete