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Oxidation pond techniques have become very popular with small communities because of their low construction and operating cost and offer a significant financial advantage over other recognized treatment methods. However, in the arid and semiarid regions the salination due to the evaporation is one of the main problems. The present year long study evaluates the use of aerated lagoons system for the treatment of municipal wastewater in Ismailia, Egypt. The treated effluent is presently used for irrigating lumber trees forest around the wastewater treatment plant on the sandy desert soil.