The white rot fungus Phanerochaete chrysosporium and its extracellular enzyme lignin peroxidase are both known to catalyze the transformation and, in many cases, the degradation of several hazardous compounds and are, therefore, promising candidates for application in hazardous waste treatment. The application of P. chrysosporium in large-scale waste treatment and commercial production of lignin peroxidase has been impeded by the lack of bioreactor systems yielding consistent production of high levels of lignin peroxidase under long-term steady state conditions and controlled growth of the fungus. The use of innovative biofilm systems, which minimize intensive shear and provide for fungal growth as a biofilm, was investigated. The viability of the use of a hollow fiber reactor and a stirred tank reactor modified into a unique silicone membrane reactor for the cultivation of P. chrysosporium and production of high levels of lignin peroxidase was demonstrated. The membrane reactor utilizes silicone tubing as a growth support and for oxygenation. The silicone membrane reactor was operated using a repeated batch technique, consisting of alternating growth and production phases, to yield production of lignin peroxidase over a period of 5 weeks and appears promising for application as a hazardous waste treatment process.