This paper is about the studies carried out to analyze the feasibility of using an innovative treatment system in the primary treatment process for municipal waste water. Furthermore, experiments are conducted to analyze the optimal parameters for utilizing the treated waters for irrigation purposes and for biogas production from the recovered sludge. The work is carried on the incoming municipal wastewater from Hammarby locality with around 30,000 inhabitants. Chemicals used in this process are, a metal salt namely polymerized aluminum chloride (PAX XL36) and two flocculation chemicals namely, a high molecular weight polymer (HM) (SNF Nordfloc C-192) and a low molecular weight polymer (LM) (Purfix 120). The choice of these chemicals was based on the recommendations made by previous studies on flocculation chemicals. These chemicals aid in flock formation and the DAF unit which provides compressed air, aids in flock flotation. The study is focused on optimizing parameters which implies minimal usage of chemicals and aimed to attain maximum sludge production with best possible treated water quality. All the experiments have been carried out on a pilot scale unit, designed with required specifications and with the foresight to scale up into a large scale unit based on the results. These are obtained by performing a series of analysis specifically formulated for this study. In laboratory experiments were carried out to analyze COD (chemical oxygen demand), Ammonium, Nitrate, Total nitrogen and phosphorus using Dr. Lange cuvettes. As the prime focus is on reuse of the treated water for irrigation purpose and biogas production, all the parameters are modulated in accordance with the standard water quality prescriptions for the water to be used for irrigation. In accordance with the climatic conditions of the region, various parameters are modulated in such a way that in summers the outcome water quality is emphasized and maximization of sludge/organic matter is emphasized during winter season.