-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001179110-07-000169.txt : 20070103
<SEC-HEADER>0001179110-07-000169.hdr.sgml : 20070101
<ACCEPTANCE-DATETIME>20070103165610
ACCESSION NUMBER:		0001179110-07-000169
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20061229
FILED AS OF DATE:		20070103
DATE AS OF CHANGE:		20070103

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CLARK HOWARD LONGSTRETH JR
		CENTRAL INDEX KEY:			0001181363
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		STATE OF INCORPORATION:			D0
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13711
		FILM NUMBER:		07505407

	BUSINESS ADDRESS:	
		STREET 1:		C/O WHITE MOUNTAINS INSURANCE GROUP, LTD
		STREET 2:		80 SOUTH MAIN STREET
		CITY:			HANOVER
		STATE:			NH
		ZIP:			03755
		BUSINESS PHONE:		603 640 2200

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WALTER INDUSTRIES INC /NEW/
		CENTRAL INDEX KEY:			0000837173
		STANDARD INDUSTRIAL CLASSIFICATION:	GEN BUILDING CONTRACTORS - RESIDENTIAL BUILDINGS [1520]
		IRS NUMBER:				133429953
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1500 N DALE MABRY HWY
		CITY:			TAMPA
		STATE:			FL
		ZIP:			33607
		BUSINESS PHONE:		8138714811

	MAIL ADDRESS:	
		STREET 1:		1500 N DALE MABRY HWY
		STREET 2:		1500 NORTH MABRY HGWY
		CITY:			TAMPA
		STATE:			FL
		ZIP:			33607

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HILLSBOROUGH HOLDINGS CORP
		DATE OF NAME CHANGE:	19910814
</SEC-HEADER>
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<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
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    <issuer>
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        <issuerName>WALTER INDUSTRIES INC /NEW/</issuerName>
        <issuerTradingSymbol>WLT</issuerTradingSymbol>
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    <reportingOwner>
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            <rptOwnerCik>0001181363</rptOwnerCik>
            <rptOwnerName>CLARK HOWARD LONGSTRETH JR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>745 SEVENTH AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
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        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
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            <isTenPercentOwner>0</isTenPercentOwner>
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            <otherText></otherText>
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    </reportingOwner>

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            <transactionCoding>
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            <transactionDate>
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                    <footnoteId id="F2"/>
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            <exerciseDate>
                <footnoteId id="F5"/>
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            <expirationDate>
                <value>2014-04-22</value>
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            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
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                <underlyingSecurityShares>
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                    <value>7770</value>
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                    <value>D</value>
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            <transactionDate>
                <value>2005-04-28</value>
            </transactionDate>
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                <transactionAcquiredDisposedCode>
                    <value>A</value>
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            <exerciseDate>
                <footnoteId id="F6"/>
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            <expirationDate>
                <value>2015-04-28</value>
            </expirationDate>
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                    <value>Common Stock</value>
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            <conversionOrExercisePrice>
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            <transactionDate>
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                <transactionCode>J</transactionCode>
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                <footnoteId id="F1"/>
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                    <value>7770</value>
                    <footnoteId id="F2"/>
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                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F7"/>
            </exerciseDate>
            <expirationDate>
                <value>2016-02-26</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>7770</value>
                </underlyingSecurityShares>
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                <sharesOwnedFollowingTransaction>
                    <value>7770</value>
                </sharesOwnedFollowingTransaction>
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                <directOrIndirectOwnership>
                    <value>D</value>
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            <securityTitle>
                <value>Non-qualified stock option</value>
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            <conversionOrExercisePrice>
                <value>4.77</value>
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                <value>2006-12-29</value>
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                <transactionFormType>4</transactionFormType>
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                <transactionShares>
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                    <value>D</value>
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            <exerciseDate>
                <footnoteId id="F4"/>
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                <value>2013-04-24</value>
            </expirationDate>
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                <underlyingSecurityTitle>
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    </derivativeTable>

    <footnotes>
        <footnote id="F1">Reflects an anti-dilution adjustment to previously granted equity awards under the Company's long term incentive plans in connection with the spin-off of Mueller Water Products, Inc. The equity award adjustment was effected by multiplying the number of shares underlying the equity awards by 1.9426 and by dividing the stock option exercise price by the same adjustment ratio. This adjustment ratio was obtained by dividing the closing price of the Issuer's common stock in the &quot;regular way&quot; market on December 14, 2006 ($49.05) by the &quot;ex-dividend&quot; opening price of the Issuer's common stock on the New York Stock Exchange on December 15, 2006 ($25.25).</footnote>
        <footnote id="F2">Amount shown includes the amount of the anti-dilution adjustment to previously granted equity awards and the amount of the previously granted equity awards.</footnote>
        <footnote id="F3">Options vest in 3 equal annual installments beginning 4-25 2003.</footnote>
        <footnote id="F4">Options vest in 3 equal annual installments beginning 4-24-2004.</footnote>
        <footnote id="F5">Options vest in 3 equal annual installments beginning 4-22-2005.</footnote>
        <footnote id="F6">Options vest in 3 equal annual installments beginning 4-28-2006.</footnote>
        <footnote id="F7">Options vest in 3 equal annual installments beginning 4-26-2007.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Catherine C. Bona, by power of attorney</signatureName>
        <signatureDate>2007-01-02</signatureDate>
    </ownerSignature>
</ownershipDocument>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----