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Globally, around 80% of municipal (domestic and commercial) as well as industrial wastewater are discharged into the environment without undergoing any preliminary treatment. This increases the global concern of water pollution, as it does not only cause adverse effects on the ecosystems, but also affect human health. This does not only affect access to clean drinking water, but also water to grow food. The demand for water will increase, making water use in agriculture, both an environmental and food security issue. This project utilized a composite of activated carbon derived from coconut shell wastes modified with chitosan (Chito-AC 2.0), produced in granulated forms to further enhance its adsorption efficiency and nutrient/water retention ability. The efficiency of Chito-AC 2.0 composite in water treatment was then assessed through methylene blue adsorption, which showed reduction of methylene blue concentration from 10 ppm to 2.39 ppm after 10 minutes. Greenhouse experiment also showed that red spinach plants grown in soil added with Chito-AC 2.0 were bigger, due to improved water and nutrient retention by the soil. At this juncture, it can be concluded that Chito-AC 2.0 serves dual function; (1) safe solution for water treatment, and (2) sustainable soil amendment for improved agriculture.