About 17 million tons of sewage sludge are disposed in the US each year in our forests and on our farms. Sludge-borne toxins are bioassimilated into our foods, and sludge leachates enter our precious waters. We have detected a novel fungus that may detoxify sludge toxins, rendering the residual sludge materials safer and available for beneficial reuse. We intend to culture and identify the fungus as a first step to its commercial exploitation.