In a method of treating a residue stream from the production of bisphenol-A, the residue stream is contacted with an aqueous solution of a base under conditions effective to hydrolyze at least part of said residue stream into acetone and phenol and produce an effluent stream. Acetone is recovered from the effluent stream to produce a phenol-containing mixed phase stream which is substantially free of acetone and which contains water and unhydrolyzed heavy organic compounds. The phenol-containing mixed phase stream is then treated with a water-immiscible organic solvent to extract phenol and unhydrolyzed heavy organic compounds into said solvent and produce an organic phase containing the solvent, phenol and unhydrolyzed heavy aromatic compounds and an aqueous phase with reduced concentrations of phenol and unhydrolyzed heavy organic compounds. At least part of the phenol and the organic solvent are subsequently recovered from the organic phase.