Toxic Release Inventory (TRI) data were used to compare average releases (kilograms per metric ton) of paper mills using primarily recovered wastepaper versus mills using primarily virgin wood fiber. Annual releases, for 79 mills, of chlorine, chlorine dioxide, chloroform, acids (hydrochloric and sulfuric), volatile organics (methyl ethyl ketone, methanol, and acetone), and ammonia were compared over the years 1987–1992. Both types of mills reported generally lower toxic releases in 1992 than in 1987; however, toxic releases in all categories were significantly lower from mills using recovered wastepaper than from mills using virgin wood fiber, strongly demonstrating that recycling has added benefits beyond reduced resource consumption. These results suggest that environmental policy should concentrate as much on increasing demand for recycled paper and developing wastepaper collection infrastructure as it does on end-of-pipe pollution abatement.