Bio-deteriorated waste is the leftover organic matter of unwanted raw food which if not handled properly or left for natural degradation can cause health issues. Microorganisms have the ability to biodegrade waste by secreting enzymes. The aim of the work was to isolate and identify lipase-producing bacteria from waste polluted (Bio-deteriorated waste and Municipal Solid Waste) dumping sites of Gandhinagar, Gujarat, India. Lipase-producing bacteria were isolated using tributyrin agar as a selective medium. Out of 7 bacterial isolates, 1 isolate (HAL-2) gave the highest lipolytic activity. HAL-2 was identified as Bacillus pumilus by 16S rRNA sequencing. The bacterial isolate gave maximum lipase activity (0.68 U/mL) at 37°C and pH 7.0 Culture medium parameters such as carbon source, nitrogen source, pH, and inoculum size were varied for the purpose of optimization. The maximum lipase production was observed at pH 7.0, 37°C temperature. Inoculum size had an effect of direct proportionality on lipase activity. Glycerol tributyrate was found to be the best substrate (0.68 U/mL). Sucrose and Tryptone in the medium increased enzyme production when compared with other carbon and nitrogen sources.