The sludge burden waste waters from coagulation, flocculation and filter backwashing may create large problems for many water suppliers in respect of discharge or recycling possibilities. Therefore, save, less trouble-prone but also cost-efficient possibilities have to be found and to be adapted to the special local circumstances onsite the water works. The general approach suggested by this study to deal with the mentioned problem is applicable to other water works too, but will be exemplarily illustrated for the water works (WW) Hosterwitz in Dresden, Germany. Options for sludge recycling have been investigated first. As a result of our investigations, biological treatment and subsequent recycling in recultivation appears to be the most advantageous alternative. Further, different treatment technologies have been studied to evaluate the resulting advantages concerning sludge withdrawal and treatment. Feasible variants of the considered technologies (indirect discharge, modification and supplementation of the present technology, compact coagulation, and membrane filtration) have been designed and dimensioned to allow for a comparison of performance, space requirements and resulting capital expenses (CAPEX) and operating expenses (OPEX). Following our investigations and economical comparisons, the option "direct sludge withdrawal from coagulation/sedimentation basins by an external company" and "Construction of a sludge storage volume as basin or tank" could be identified as preferred alternative. Sludge withdrawal from sedimentation basins presented the economically most beneficial solution, but the low costs of this option faces technological shortcomings, since water and sludge treatment cannot be completely decoupled and therefore mutual interactions can not be excluded. Providing an additional sludge storage volume and treatment shows to be technologically more beneficial but is space consuming. Generally, modification and supplementation of the present technologies showed up to be economically the best solution. Onsite sludge storage and treatment would be preferable too, if the required space is available. If not, compact coagulation and membrane filtration become more promising alternatives to reduce sludge production.