A system and method for creating power and pasteurizing water is provided. The system includes a power generation subsystem and a water pasteurization subsystem, which are linked together as follows. The power generation subsystem comprises a turbine power generator. Air (or other suitable working fluid) flows through the turbine power generator to generate power by known methods. The air is heated prior to flowing into the turbine to increase its speed for greater power generation. The water pasteurization subsystem includes one or more heat exchangers, at least one of which is connected to receive the hot airflow exiting the turbine. The heat from the turbine-exiting airflow is utilized for pasteurizing colder wastewater inside the heat exchanger.