A system and method for treating, injecting and co-combusting sludge in a municipal waste or other combustor is disclosed. The system includes a sludge receiving and treatment module and a sludge injection and combustion module. The sludge is received and stored in one or more storage hoppers where it is first diluted with a liquid and subsequently mixed to a desired homogeneous consistency suitable for pumping. The high liquid content sludge is then pumped to a furnace injection nozzle where it is preferably atomized with steam and sprayed into the combustion zone of the furnace. The disclosed system and method increases sludge moisture content and controls the solids content of the sludge to control furnace temperature.