Abstract: A modified activated sludge system is provided wherein BOD-containing wastewater and recycled sludge are initially admixed under anaerobic conditions in the substantial absence of oxygen or oxidizing agents and subsequently subjected to aeration and clarification. By the disclosed operation the selective production of non-bulking biomass is favored while effective removal of phosphates is obtained. By a further alternative modification, nitrates and nitrites are also removed by interposing an anoxic treating zone between the anaerobic zone and the aerating zone.