The project for treating MSW of 200 tons each day was built in Yibin, Sichuan Province of China. The disposal processes are: separation and selection of usable resources; compost and fermentation of heavy organic waste (kitchen, garden composting rubbish); incineration of light waste (plastic, paper, wood and bamboo etc.) and landfill of inorganic waste. The thermal energy generated in the process can be used as 1/3 of the whole energy for drying fertilizers. In the process, there is no wastewater drainage, and air emissions can be effectively controlled by a series of measures. The sanitary and environmental indicators of disposal site meet the national standards. This project has worked well for two years. It not only disposes of and reduces the MSW,but also retrieves the resource effectively. The organic fertilizer has been applied in the ten thousand acres of fields, with productivity increase by more than 10%.