This paper presents a study where sustainable development indicators (SDIs) for sludge handling and wastewater treatment systems were constructed in co-operation with a large Swedish water company. Results from a life cycle assessment, a risk assessment, an economic assessment and an uncertainty assessment were used as inputs for ranking technical options of sludge handling by use of multi-criteria analysis (MCA). The MCA included assessment of the different technical options, valuation of different, and often conflicting, aspects of sustainability and weighting of various criteria. On basis of the preferences expressed in the MCA, a number of SDIs and, when possible, targets for sustainable development, were formulated. The resulting SDIs reflected economic, environmental, technical and social aspects of sustainable development of sludge handling systems. Where possible, the coverage of the indicators was extended to the entire wastewater system.