Largo, Florida dries its sludge and sells it as fertilizer for $80 to $169/T. The sludge processing plant capable of turning common sludge into a dry, pelletized soil conditioner was only slightly more expensive than the previously proposed concrete drying beds which would have required disposal of the dried residue. The city's experience in setting up the plant and marketing the finished product is discussed. The true advantage of selling heat-dried sludge is that residents of the surrounding area, knowing the value of the product to their lawns and shrubs, will provide the transportation for the product and the physical labor to spread it over an area wider than most municipalities could afford to own or operate. The current production cost of $140/T is high, but the addition of a sludge prethickener-conditioner process and expected future economies of scale as the volume of sludge treated increases should lower per ton costs.