Pre-ozonation is often uneconomical for typical wastewaters with varied mixtures of organic compounds as more biodegradables than non-biodegradables are oxidized, all requiring ozone. The concept developed in this paper is ozonation within an activated sludge system to oxidize recalcitrant substances to more degradable forms and byproducts and to immediately assimilate or biodegrade these within the biological system. The focus was on a novel method of combining ozonation and biological treatment in one integrated unit without adversely affecting the bacterial population responsible for the biological degradation. An azo dye, spiked into the wastewater feed was used to study removal of a recalcitrant compound in a biological system.