Irrigation with municipal effluent was evaluated during 25 months in Southern Iran from 2003 to 2005 in which 14 tree species were irrigated with effluent and borehole water at an annual supply rate of 3,940 and 5,395 m(3) ha(-1), respectively. To mitigate the environmental effects, a drip irrigation system was designed and the amount of applied water based on pan evaporation was measured by flow meters and soil properties were monitored. The statistical results showed that the applied effluent had no adverse effect on soil properties. The soil salinity was reduced from 8.2, 6.8 and 7.0 dSm(-1) to 1.07, 1.12 and 3.5 dSm(-1 )in the soil layers 0-30, 30-60 and 60-90 cm, respectively. The SAR decreased significantly, while soil pH increased by 0.8 and 0.6 units in the layers 0-30 and 30-60 cm. A total application of 9,335 m(3)ha(-1 )of effluent with a nitrogen and phosphorus concentration of 7.9 and 10.3 mg l(-1), added 73 and 101 kg ha(-1) of nitrogen and phosphorus to the soil. Organic carbon also increased significantly. Twenty-five months irrigation with effluent caused a slight increase in soil bulk density and a slight decrease in mean permeability. Because of an efficient filtration and high discharge rate of bubblers (drippers), no considerable sign of clogging was observed.