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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 RxytjG1/8Vgs3D0OhTBMi2UKKalqFSAy1CyPoD6dy8gDdxg5uwyl8a/d+luj5ExB
 8JkALLB2oZCCNxs3WWyF5g==

<SEC-DOCUMENT>0001209191-06-048696.txt : 20060905
<SEC-HEADER>0001209191-06-048696.hdr.sgml : 20060904
<ACCEPTANCE-DATETIME>20060905122341
ACCESSION NUMBER:		0001209191-06-048696
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060901
FILED AS OF DATE:		20060905
DATE AS OF CHANGE:		20060905

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COVANTA HOLDING CORP
		CENTRAL INDEX KEY:			0000225648
		STANDARD INDUSTRIAL CLASSIFICATION:	COGENERATION SERVICES & SMALL POWER PRODUCERS [4991]
		IRS NUMBER:				956021257
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		40 LANE ROAD
		CITY:			FAIRFIELD
		STATE:			NJ
		ZIP:			07004
		BUSINESS PHONE:		973-882-9000

	MAIL ADDRESS:	
		STREET 1:		40 LANE ROAD
		CITY:			FAIRFIELD
		STATE:			NJ
		ZIP:			07004

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DANIELSON HOLDING CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MISSION INSURANCE GROUP INC
		DATE OF NAME CHANGE:	19900826

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MISSION EQUITIES CORP
		DATE OF NAME CHANGE:	19770921

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PYTOSH MARK A
		CENTRAL INDEX KEY:			0001283677

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06732
		FILM NUMBER:		061073158

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		905-319-6056

	MAIL ADDRESS:	
		STREET 1:		1155 INTERNATIONAL BLVD.
		STREET 2:		SUITE 601
		CITY:			BURLINGTON
		STATE:			A6
		ZIP:			L7L 6Z8

	FORMER NAME:	
		FORMER CONFORMED NAME:	PYTOSH MARK
		DATE OF NAME CHANGE:	20040315
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>c08250_02mp4.xml
<DESCRIPTION>MAIN DOCUMENT DESCRIPTION
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-09-01</periodOfReport>

    <issuer>
        <issuerCik>0000225648</issuerCik>
        <issuerName>COVANTA HOLDING CORP</issuerName>
        <issuerTradingSymbol>CVA</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001283677</rptOwnerCik>
            <rptOwnerName>PYTOSH MARK A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>40 LANE ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>FAIRFIELD</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>07004</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>SVP and CFO</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, $.10 par value</value>
            </securityTitle>
            <transactionDate>
                <value>2006-09-01</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>20000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>20000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>20.35</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-09-01</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2016-09-01</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>50000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>50000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">25,000 options vest on February 28, 2007 and 25,000 options vest on February 28, 2008.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Mark Pytosh</signatureName>
        <signatureDate>2006-09-01</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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