Apparatus and method for electrolysis of urea is capable of removing urea from waste-water generated by human urine or agricultural run-off while simultaneously producing cleaner water and hydrogen gas. The apparatus and method employ at least one water reduction electrode located close to at least one urea oxidation electrode. The water reduction electrode operates to generate a locally high pH such that the urea oxidation electrode operates in a locally high pH envelope where it can perform its reaction efficiently to break down the urea with little or no impact on the pH of the bulk solution.