The persistence of azo dyes in aquatic environments poses ecological and health concerns due to their toxicity and resistance to biodegradation. While physicochemical treatments have been explored, their cost and scalability limitations highlight the need for biological alternatives. This study evaluates the biotransformation capacity of Streptomyces strains isolated from Colombian rivers sediments against three azo dyes (Tartrazine, Congo Red, and Acid Red 18), and the role of inducers in enhancing biomass and dye removal. Two culture media (minimal medium and International Streptomyces Project-2) were compared, revealing significantly higher discoloration in the presence of additional carbon sources (p = 0.019). Strain 508 exhibited optimal performance with Congo Red and Acid Red 18 when inducers were supplied. Among the inducers tested, yeast extract enhanced discoloration of Tartrazine and Congo Red, whereas saccharose favored Acid Red 18. Desorption effects were considered when selecting the optimal inducer confirming a two-phase process that can also be affected by culture conditions. Spectrophotometric analyses also demonstrated that autoclaving destabilized dye structures through metal complex formation, leading to the adoption of membrane filtration as a superior sterilization method. Overall, the results highlight the influence of medium design and inducer supplementation on azo dye biotransformation. Beyond laboratory validation, the integration of agro-industrial by-products as low cost inducers offers a circular approach for wastewater treatment. These findings reinforce the potential of biological methods as efficient and sustainable bioprocesses that valorize local microbial resources while addressing industrial dye pollution.