Representatives of Eastbourne Borough, Hastings Borough, Rother District and Wealden District councils, officially confirmed the agreement with Kier at the Towner Gallery in Eastbourne.
East Sussex County Council also worked as part of the partnership to bring the contract about.
The project is one of the largest of its kind in the UK, serving almost 200,000 residents across 550 square miles.
As well as providing enormous savings, the contract will offer residents a better level of service, with people in the partnership area being able to recycle more types of waste more easily than ever before.
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Residents in Eastbourne and Wealden will be the first to benefit following the introduction of the new service from April next year, with Hastings following in July. Rother will follow from April 2014.
The move is the largest example of joint work between the authorities, as councils look to find savings during the difficult financial climate that has seen large reductions in their government grant settlements.
Kier won the circa £12m per annum contract through a competitive tendering process. The contract has an optional ten-year extension.
Cllr Gill Mattock, chair of the joint waste committee, said: "This is a fantastic success story and a terrific testament to the benefits of joint working. The signing of the joint waste contract will prompt other councils up and down the UK to look more closely at opportunities to work in partnership with neighbouring authorities, particularly in the area of waste collections and recycling. I am very proud that Eastbourne, Hastings, Rother and Wealden are at the forefront of this new approach."
(CD/GK)
