Homes across South Oxfordshire and the Vale of White Horse are to be given wheelie bins and offered weekly kitchen waste collections as part of a major change to rubbish services.
The district councils are teaming up to provide a waste collection and street cleaning service across the two areas.
South Oxfordshire's contracts with waste firms Grundon, Verdant and Cannon end in 2009, while the Vale's contract with Veolia runs out in 2010.
Both councils hope to cut the amount of waste heading to landfill and dodge huge Government fines.
The agreement is expected to be signed and sealed by the end of the year.
A South Oxfordshire District Council spokesman said: "We had to change. Apart from environmental reasons for reducing the amount of waste we send to landfill sites, we face huge fines from the Government if we don't change.
"We can avoid these fines and help protect our planet if we change the way we deal with our rubbish."
When the new contract comes into force there will be a new weekly collection of food waste for composting, a new fortnightly collection of wheelie-bins containing non-food rubbish, and glass will be allowed in the green recycling boxes for the first time in South Oxfordshire.
Tony de Vere, deputy leader of the Vale council, said: "This joint waste contract should provide an excellent way of saving money."
David Dodds, cabinet member the council in South Oxfordshire, said: "Working in partnership is good news for residents as it will help us save money and provide an improved service."
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