In general, sanitation systems can be characterized as decentralized or centralized. A decentralized system treats human waste co-located with or near the source of the waste, in contrast to a centralized system where waste is collected and transported to a centralized treatment plant. Decentralized systems can provide an effective, low-cost alternative to a centralized system and often serve rural and smaller communities, as well as communities in which centralized systems may not be feasible due to distance, terrain, or other factors.
Sanitation systems, ranging from household/business to neighborhood to city systems, are categorized according to the location of the system components and associated functions, and whether they are owned and managed by a household/business, shared by a group of households/businesses or are publicly owned and managed as with city/ community utilities.