  In the framework of QCD factorization, based on the first order of isospin
violation, we study direct CP violation in the decay of $\bar{B}_{s}^{0} \to
K^{0}\rho^{0}(\omega)\to K^{0}\pi^{+}\pi^{-}$ including the effect of
$\rho-\omega$ mixing. We find that the CP violating asymmetry is large via
$\rho-\omega$ mixing mechanism when the invariant mass of the $\pi^{+}\pi^{-}$
pair is in the vicinity of the $\omega$ resonance. For the decay of
$\bar{B}_{s}^{0} \to K^{0}\rho^{0}(\omega)\to K^{0}\pi^{+}\pi^{-}$, the maximum
CP violating asymmetries can reach about 46%. We also discuss the possibility
to observe the predicted CP violating asymmetries at the LHC.
