Granular sludge is a novel alternative for the treatment of wastewater and offers numerous operational and economic advantages over conventional floccular-sludge systems. The majority of research on granular sludge has focused on optimization of engineering aspects relating to reactor operation with little emphasis on the fundamental microbiology. In this study, we hypothesize two novel mechanisms for granule formation as observed in three laboratory scale sequencing batch reactors operating for biological phosphorus removal and treating two different types of wastewater. During the initial stages of granulation, two distinct granule types (white and yellow) were distinguished within the mixed microbial population. White granules appeared as compact, smooth, dense aggregates dominated by 97.5% "Candidatus Accumulibacter phosphatis," and yellow granules appeared as loose, rough, irregular aggregates with a mixed microbial population of 12.3% "Candidatus Accumulibacter phosphatis" and 57.9% "Candidatus Competibacter phosphatis," among other bacteria. Microscopy showed white granules as homogeneous microbial aggregates and yellow granules as segregated, microcolony-like aggregates, with phylogenetic analysis suggesting that the granule types are likely not a result of strain-associated differences. The microbial community composition and arrangement suggest different formation mechanisms occur for each granule type. White granules are hypothesized to form by outgrowth from a single microcolony into a granule dominated by one bacterial type, while yellow granules are hypothesized to form via multiple microcolony aggregation into a microcolony-segregated granule with a mixed microbial population. Further understanding and application of these mechanisms and the associated microbial ecology may provide conceptual information benefiting start-up procedures for full-scale granular-sludge reactors.Activated sludge can be operated as an efficient biological process to treat and remove unwanted nutrients, such as carbon, nitrogen, and phosphorus, from wastewater. Two common processes applied in wastewater treatment are enhanced biological phosphorus removal (EBPR) (28), which is widely applied for carbon and phosphorus removal, and simultaneous nitrification-denitrification and phosphorus removal (SNDPR) (40), which combines carbon, phosphorus, and nitrogen removal. Conventional plants operating for EBPR and SNDPR typically operate as floccular-sludge systems, in which small aggregates (30 to 200 m) of microorganisms make up the suspended biofilms of activated sludge (10). Aerobic granular activated sludge is a novel alternative for the treatment of wastewater and offers several operational and economic advantages over conventional floccular-sludge systems (9, 22). Granular sludges are typically larger suspended biofilm aggregates (200 to 2,000 m) and typically contain higher biomass concentrations within the same reactor vessels than floccularsludge systems (4, 29). However, granular sludge has yet to be applied to full-s...