Red mud is the residue of the bauxite treatment for aluminum production. For each part of alumina produced by this process, about one part of red mud is generalIy discarded as a waste. In this work it is utilized as pigments in protective coatings for carbon steel in waterborne polyurethane modified alkyd resin, friendly to the environment. Carbon steel coupons protected by the three systems: alkyd resin containing red iron oxide, red mud neutralized by gybsum and red mud neutralized by sea salt, which were exposed in 3 percent NaCl solution. Impedance electrochemical method were performed for characterize the corrosion protection of carbon steel. The results showed that the water based coatings containing red mud had a good protection, compared to the red iron oxide system. Mechanical properties as compact and adherence were excelIent in comparison with the alkyd resin containing red iron oxide.