Srikakulam city has been a developing place due to the steady increase in city population, which in turn resulted in the increase of domestic sewage generated, but still there is no sewage treatment plant. So it is required to construct a sewage treatment plant with sufficient capacity to treat the generated sewage. Sewage water treatment has challenges to treat the excess sludge and disposal of sludge. Sewage/wastewater treatment operations are done by various methods in order to reduce, its water and organic content, and the ultimate goal of wastewater management is the protection of the environment in a manner commensurate with public health and socioeconomic concerns. This paper focuses on the sewage generation in the Srikakulam city area and sewage treatment plant is designed. In one day the total sewage generated was estimated 22.2 MLD considering the projected population of Srikakulam town for the next 30 years. The various components of sewage treatment plant are screening, grit chamber, primary sedimentation tank, biological reactor, secondary clarifier, activated sludge tank; drying beds. It is proposed to design the various components of sewage treatment plant considering the various standards and permissible limits of treated sewage water. The treated water will be supplied for irrigating the crops and the sludge which is generated after the treatment will be used as manure, so it increases the fertility of soil. Also reduce the ground water usage.