A system is provided to treat wastewater from a metal-working facility, such as an automotive manufacturing plant in a bioreactor using live microorganisms. Such wastewater contains waste fluids which are a mixture of relatively easily biodegradable fats and oils, much less easily biodegradable synthetic fluids, oils and greases, and nonbiodegradable material including inorganic finely divided solids such as metal and silicon carbide particles. Such waste fluids require a hydraulic retention time (HRT) and a solids retention time (SRT) which is 10 times greater than for sewage. High quality water is separated from suspended solids which are removed from the reactor at an essentially constant rate and fed to an ultrafiltration membrane. Concentrate is recycled to the reactor, except for a bleed stream to remove solids periodically. The membranes acquire a long and effective life despite large variations in membrane flux, because of a permeate recycle which permits operation of the bioreactor at constant volume; permits flow of feed wastewater to the reactor at constant flow rate; and allows operation of the membrane modules at a relatively low pressure in a narrow range which does not damage the membranes. Such operation of the bioreactor allows one to use a reactor which is one-half the size (volume) than one which would be required with a system without a permeate recycle. Effective and long-lived operation of the membranes is obtained by filtering out (through a 140 mesh screen) all solids greater in diameter than about 106 mu m. Pilot plant tests conducted with wastewater from automobile manufacturing plants over a period of more than a year provide evidence of the surprising effectiveness of the system over a prolonged period.