The major sludge management methods are discussed and compared. A cost analysis of the aerated-pile process of composting sewage sludge is then presented. This process utilizes woodchips and other bulking agents to stabilize dewatered raw sludge. The operation as described is labor intensive, but subject to many modifications. The on-site cost of composting will range from $35 to $50, depending on the size of operation. This cost is insensitive to changes in capital costs but sensitive to changes in operating expenditures. A comparison of alternative sludge management processes may show composting to be cost-effective for some municipalities.