The present study was conducted to develop a biosensor by exploiting phosphate-binding capacity of exobiopolymer (EBP) produced by Acinetobacter sp. An environmental isolate of EBP-producing Acinetobacter sp. was subjected to transposon (Tn5) mutagenesis to overproduce EBP and afford improved phosphate selectivity. A mutant producing the highest amount of EBP with high phosphate-binding capacity was selected for biosensor probe fabrication. Phosphate samples were filtered through EBP-coated membranes and phosphate retained on membranes was determined by molybdenum blue method. The color produced was read using a LED 690 nm/photodiode detection system linked to an amplifier and signals were converted to appropriate phosphate concentrations. The biosensor had a limit of detection of 0.5 mg/L and a limit of quantification 1 mg/L. The biosensor as well as the probe were found to be stable for at least 28 days. In conclusion, we believe that the biosensor may have applications in monitoring of wastewater and environmental samples. Further, the enrichment of phosphate levels by EBP can help in analysis of very low phosphate concentrations.