Sludge refers to the residual, semi-solid material left from industrial wastewater, or sewage treatment processes. It can also refer to the settled suspension obtained from conventional drinking water treatment,and numerous other industrial processes. The term is also sometimes used as a generic term for solids separated from suspension in a liquid; this 'soupy' material usually contains significant quantities of 'interstitial' water (between the solid particles).

When fresh sewage or wastewater is added to a settling tank, approximately 50% of the suspended solid matter will settle out in an hour and a half. This collection of solids is known as raw sludge or primary solids and is said to be "fresh" before anaerobic processes become active. The sludge will become putrescent in a short time once anaerobic bacteria take over, and must be removed from the sedimentation tank before this happens.

http://en.wikipedia.org/wiki/Sludge