The effect of benzene on the nitrifying activity of a sludge produced in steady-state nitrification was evaluated in batch cultures. Benzene at 10 mg/L inhibited nitrate formation by 53%, whereas at 5 mg/L there was no inhibition. For initial benzene concentrations of 0, 7, and 10 mg/L, the specific rates of NO3--N production were 0.545 +/- 0.101, 0.306 +/- 0.024, and 0.141 +/- 0.010 g NO3--N/g microbial protein-N.h, respectively. The specific rates of benzene consumption at 7, 12, and 20 mg/L were 0.034 +/- 0.003, 0.050 +/- 0.006, and 0.027 +/- 0.002 g/g microbial protein-N.h, respectively. Up to a concentration of 10 mg/L, benzene was first oxidized to phenol, which was later totally oxidized to acetate. Benzene at higher concentrations (20 and 30 mg/L) was converted to intermediates other than acetate, phenol, or catechol. These results suggest that this type of nitrifying consortium coupled with a denitrification system may have promising applications for complete removal of nitrogen and benzene from wastewaters.