This paper describes the business model of municipally-owned MSW (municipal solid waste) companies in Sweden. A comparative study of two of these companies shows that they combine three types of activities: public service activities that collect solid waste from households, commercial establishments, and industry; processing activities that transform this waste; and marketing activities that enable products and recycled material to re-enter the economy. The historical success of the two companies rests on their ability to create value by combining these three distinct yet mutually dependent types of activities. However, an ongoing legal controversy may develop into a threat to this business model and to the entire organization of Swedish waste management.