A decrease in household waste has brought a saving of more than £400,000, says Oxfordshire County Council.
Oxfordshire needs to reduce landfilling by 40% by 2010
Over the last year, the amount of rubbish householders in Oxfordshire have thrown away is down by 2.6%.
But the council admits it expects waste to increase and that in 15 years it will have to deal with another 100,000 tonnes of rubbish - a third more.
A new solution will have to be found for the waste as the council will not be allowed to send it to landfill.
To fit in with European legislation, the government has set the county a deadline to reduce landfilling by 40% by 2010.
Councillor Anne Purse said: "We have done so well in helping people to reduce rubbish, we urge people to continue to see rubbish as a resource.
"Throwing stuff in the bin is just a waste, and the sooner we all realise this, the better off we shall all be."