The oxidation ditch process is economic and efficient for wastewater treatment, but its application is limited in case where land is costly due to its large land area required. An innovative integrated oxidation ditch with vertical circle(IODVC) system was developed to treat domestic and industrial wastewater aiming to save land area. The new system consists of a single-channel divided into two ditches(the top one and the bottom one by a plate), a Kesner type brush, and an innovative integral clarifier. Different from the horizontal circle of the conventional oxidation ditch, the flow of IODVC system recycles from the top zone to the bottom zone in the vertical circle as the brush is running, and then the IODVC saved land area required by about 50% compared with a conventional oxidation ditch with an intrachannel clarifier. The innovative integral clarifier is effective for separation of liquid and solids, and is preferably positioned at the opposite end of the brush in the ditch. It does not affect the hydrodynamic characteristics of the mixed liquor in the ditch, and the sludge can automatically return to the down ditch without any pump. In this study, experiments of domestic and dye wastewater treatment were carried out in bench scale and in full scale, respectively. Results clearly showed that the IODVC efficiently removed pollutants in the wastewaters, i.e., the average of COD removals for domestic and dye wastewater treatment were 95% and 90%, respectively, and that the IODVC process may provide a cost effective way for full scale dye wastewater treatment.