In order to study the performance and mechanisms of excess sludge reduction in the activated sludge that incorporates the Cannibal™ Process, laboratory activated sludge systems incorporating an anaerobic bioreactor into the sludge recycle stream were operated. In this study, the solids production in the Cannibal system was about 35-40% of the conventional system under steady state conditions. The reduction in waste sludge was optimized when the interchange rate, (the ratio of sludge fed from the activated sludge system to the bioreactor compared to the total mass in the activated sludge system) was set at about 10%. It was found that the release of protein from the anaerobic bioreactor was greater than that from the aerobic bioreactor. The SOUR data suggested that the released protein from the anaerobic bioreactor was easily degraded when the sludge was returned to the activated sludge system. It was also found that when the proportion of sludge added to the anaerobic bioreactor in batch tests was approximately 10%, the protein release was about 30 mg/L. When the proportion of sludge added was increased to 26 to 41%, the release was reduced to 10 and 6 mg/L, respectively. Within 30 hours, the protein release was complete. This suggests that there is an optimum or maximum amount of recycle or interchange (~10%) for the process to function best. / Master of Science