Denitrifying dephosphatation enables the removal of phosphorus and nitrogen with minimal use of COD, minimal oxygen consumption and minimal surplus sludge production. Moreover it would make aeration only necessary for nitrification. Therefore we have studied an anaerobic-anoxic (A2) sequencing batch reactor (SBR) coupled to a nitrification SBR. Denitrifying phosphorus removing bacteria (DPB) and nitrifiers were completely separated in two sludges in these two SBRs. The nitrified supernatant was recirculated from the nitrification SBR to the A2 SBR where nitrate was utilized by DPB as an electron acceptor for phosphorus removal. The technical feasibility for simultaneous phosphorus and nitrogen removal in the proposed two-sludge system was evaluated. The benefits of two-sludge systems over single-sludge systems were also discussed. It could be concluded that the separation of the nitrification step leads to an optimal process design for the application of denitrifying dephosphatation. The two-sludge system showed stable phosphorus and nitrogen removal, and enabled the removal of 15 mg-P/1 and 105 mg N/1 at the expense of only 400 mg-COD/1 acetic acid. Stoichiometric calculations showed that, in the two-sludge system the required COD can be up to 50% less than for conventional aerobic phosphorus and nitrogen removal systems. Moreover oxygen requirements and sludge production can be decreased in significant amounts of about 30 and 50%, respectively.