Waste management company Shanks Group has signed a 25-year agreement, worth more than £700 million, with Cumbria County Council.
The deal will see much of the area's waste sent to new mechanical biological treatment plants in Hespin Woods near Carlisle and Barrow.
Although the contract takes effect immediately, construction of the plants will not get underway until later this year, with
landfill waste expected to fall by 80 per cent once they are up and running.
Commenting on the plans, council leader Stewart Young said: "This contract will truly revolutionise waste disposal in Cumbria by massively reducing the amount of rubbish sent to
landfill and providing the county with a cost-effective system for dealing with waste for many years to come."
Transfer stations will be built at Flusco near Penrith, and in Distington to facilitate the transport of waste from homes and businesses to the new plants.
In related news, the Environment Agency launched a new pilot project last week, enabling businesses based in the south-east to electronically track the collection and transfer of their waste products.
The initiative was introduced to clamp down on fly tipping in the area.
Written by Claire Manning