Activated sludge with enhanced ability of phosphorus storage and nitrification immobilized in alginate and alginate-PVA was applied to remove phosphorus and nitrogen from waste water. The activated sludge immobilized in alginate achieved higher efficiency of phosphorus removal. It was 18% higher than in the case of activated sludge. The rates of nitrogen removal by the activated sludge and the activated sludge immobilized in alginate were similar and amounted to 0.021 and 0.190 mg TN?g-1MLSS?min-1. For the activated sludge immobilized in alginate the nitrification rate was 6 times lower than for the activated sludge. However, in the activated sludge immobilized in alginate-PVA nitrification did not occur.