The management of drinking water treatment plant (DWTP) sludge is challenging for water treatment facilities. Previous studies reported mainly on handling sludge through landfilling, release into water bodies, discharge into wastewater treatment plants, onsite disposal, and incineration methods for the treatment of sludge. The limitations of these sludge-handling methods are well documented. This article focuses on the hierarchical approach as an alternative and comprehensive method for handling DWTP sludge. The core of hierarchical management streamlines the minimization of the generated DWTP sludge; treatment of DWTP sludge to reduce toxicity; changing of the physicochemical form of DWTP sludge; and finally, the reuse, recycling, and recovery of DWTP sludge. The premise is to achieve zero landfilling of DWTP sludge, establish a circular economy, generate job opportunities, and preserve the environment. Thus, this study also proposes two main technologies, which are gravity-based sludge separators for fractionating the sludge and photocatalytic membrane reactors (PMRs) as a technology for the treating and/or recovery of nutrients and minerals from DWTP sludge. Until the chemical deductive or minus approach becomes a reality in water treatment, the use of PMRs and gravity-based sludge separators will enhance the management of DWTP sludge when incorporated into the hierarchical approach.